Anna is a Sole Trader. On 1 June 2020 she purchased a motor car for use...
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Anna is a Sole Trader. On 1 June 2020 she purchased a motor car for use in her business. She uses The Commissioner's default effective life of 8 years. The following items were incurred: Purchase price Registration, insurance, fuel & oil 5,000 Cost of disposing of her old car 1,000 marks) S 80,000 Required: (1) Calculate the cost of the car for depreciation purposes, explaining the treatment of each listed item above. 2 PART B 86,000 (2) Calculate the maximum decline in value of the car to 30 June 2020 assuming Anna intends does not use the small business concessions. Explain your steps. (4+4= 8 Anna keeps receipts, and her logbook indicates that the car is used 30% for business. The odometer reading indicates a total of 2,000 klms for June 2020. Total running costs are $3,000 including decline in value. Required: Calculate Anna's maximum deduction for the use of the car explaining your workings. (4 marks) 2 PART B Anna keeps receipts, and her logbook indicates that the car is used 30% for business. The odometer reading indicates a total of 2,000 klms for June 2020. Total running costs are $3,000 including decline in value. Required: Calculate Anna's maximum deduction for the use of the car explaining your workings. 2 PART C Anna carries on a business as a clothing retailer. Opening stock value from last year is $20,000 and her stock purchases for the year amount to $250,000. The warehouse stock-take on 30 June 2020 shows the following: 000 000 Dashboard Calendar (4 marks) To-do Notifications Inbox The warehouse stock-take on 30 June 2020 shows the following: Item (unit) X $110 $75 Z Market Selling Quantity Cost Price (unit) 100 50 0 (units) $180 $100 $100 $150 (per unit) Replacement $200 Price $300 NOTE: a) Anna has recently received an invoice for 20 units of item Z purchased from an overseas supplier at a cost of $150 each (already included in the purchases figure above). However, they are still in transit with Anna's shipping agent. b) Item X is recently out of fashion. On 30th June, Anna has just noticed that other shops have been clearing their stocks of item X at a special price of $40 in order to re- stock with current items. Required: 1) Calculate the value of closing stock (indicate the quantity and value for each item) assuming Anna wishes to minimise her taxable income. Refer to case law and/or ITAA sections. 2) What deductions is Anna entitled to in relation to trading stock? (5+3 = 8 Anna is a Sole Trader. On 1 June 2020 she purchased a motor car for use in her business. She uses The Commissioner's default effective life of 8 years. The following items were incurred: Purchase price Registration, insurance, fuel & oil 5,000 Cost of disposing of her old car 1,000 marks) S 80,000 Required: (1) Calculate the cost of the car for depreciation purposes, explaining the treatment of each listed item above. 2 PART B 86,000 (2) Calculate the maximum decline in value of the car to 30 June 2020 assuming Anna intends does not use the small business concessions. Explain your steps. (4+4= 8 Anna keeps receipts, and her logbook indicates that the car is used 30% for business. The odometer reading indicates a total of 2,000 klms for June 2020. Total running costs are $3,000 including decline in value. Required: Calculate Anna's maximum deduction for the use of the car explaining your workings. (4 marks) 2 PART B Anna keeps receipts, and her logbook indicates that the car is used 30% for business. The odometer reading indicates a total of 2,000 klms for June 2020. Total running costs are $3,000 including decline in value. Required: Calculate Anna's maximum deduction for the use of the car explaining your workings. 2 PART C Anna carries on a business as a clothing retailer. Opening stock value from last year is $20,000 and her stock purchases for the year amount to $250,000. The warehouse stock-take on 30 June 2020 shows the following: 000 000 Dashboard Calendar (4 marks) To-do Notifications Inbox The warehouse stock-take on 30 June 2020 shows the following: Item (unit) X $110 $75 Z Market Selling Quantity Cost Price (unit) 100 50 0 (units) $180 $100 $100 $150 (per unit) Replacement $200 Price $300 NOTE: a) Anna has recently received an invoice for 20 units of item Z purchased from an overseas supplier at a cost of $150 each (already included in the purchases figure above). However, they are still in transit with Anna's shipping agent. b) Item X is recently out of fashion. On 30th June, Anna has just noticed that other shops have been clearing their stocks of item X at a special price of $40 in order to re- stock with current items. Required: 1) Calculate the value of closing stock (indicate the quantity and value for each item) assuming Anna wishes to minimise her taxable income. Refer to case law and/or ITAA sections. 2) What deductions is Anna entitled to in relation to trading stock? (5+3 = 8
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Part A 1 Cost of the car for depreciation purposes Purchase price 80000 Registration insurance fuel ... View the full answer
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
Posted Date:
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