Michael, a resident, carries on a retail business and has incurred a number of expenses during the
Question:
Michael, a resident, carries on a retail business and has incurred a number of expenses during the year current tax year ended 30 June as follows:
Replacing the original loose gravel surface of the car park with a concrete surface at a cost of $22 000. The concrete surface will be longer lasting and have a lot less dust when compared with the gravel surface.
Replacing the roof tiles on his business premises with new roof tiles at a cost of $34 000. The old roof tiles had become cracked and the rain was leaking through them and damaging Michael’s trading stock. The new tiles were of a similar quality as the original tiles.
Based on this information what amount can Michael claim as a tax deduction as repairs under s 25-10 Income Tax Assessment Act 1997 in the current tax year ended 30 June?
Select one:
1. Nil
2. $56 000.
3. $22 000.
4. $56 000.
5. $34 000.
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott