An SBE taxpayer has an Opening Balance in a Pool of $180,000. He has purchased the...

 

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An SBE taxpayer has an Opening Balance in a Pool of $180,000. He has purchased the following 2 items on 1 November of the current income year: Asset X at the cost of $160,000. It has a life expectancy of 15 years. Asset Y at the cost of $145,000. It also has a life expectancy of 15 years. The taxpayer would like to use the low-value pools where applicable and minimise his taxable income. What will be the rate of depreciation and the Decline in value for the current year for each of the items? Complete the answers in the spaces below. Only write the figures without the commas or the percentage sign. The schedule below will only permit you to write the depreciation rate and the decline in value. UNIFORM CAPITAL ALLOWANCES EXISTING ASSETS AND NEW ASSETS DISPOSALS Decline CAV in Value AV (at SP sale) YEAR ITEM CP OAV RATE DAYS B/A 1/7 Pool 180000 [A] [B] 1/11 160000 [C] [D] 1/11 Y 145000 [E] [F] An SBE taxpayer has an Opening Balance in a Pool of $180,000. He has purchased the following 2 items on 1 November of the current income year: Asset X at the cost of $160,000. It has a life expectancy of 15 years. Asset Y at the cost of $145,000. It also has a life expectancy of 15 years. The taxpayer would like to use the low-value pools where applicable and minimise his taxable income. What will be the rate of depreciation and the Decline in value for the current year for each of the items? Complete the answers in the spaces below. Only write the figures without the commas or the percentage sign. The schedule below will only permit you to write the depreciation rate and the decline in value. UNIFORM CAPITAL ALLOWANCES EXISTING ASSETS AND NEW ASSETS DISPOSALS Decline CAV in Value AV (at SP sale) YEAR ITEM CP OAV RATE DAYS B/A 1/7 Pool 180000 [A] [B] 1/11 160000 [C] [D] 1/11 Y 145000 [E] [F]

Answer rating: 100% (QA)

Given facts Opening balance in a pool 180000 Asset X cost 160000 with life expectancy of 1... View the full answer