Consider each of the following independent transactions in the case of Oz Furniture Ltd, a retailer of furniture. The company's annual turnover is $40 million making it a small business entity. During the 2021 income year, the company purchased the following assets for exclusive use in the business: Item Date of acquisition Estimated effective life Cost (a) Desktop computer 13 July 2020 4 years $2 800 (b) Motor vehicle 9 September 2020 8 years $80 000 (c) Copyright 1 December 2020 20 years * $100 000 (d) Commercial Building 1 June 2021 construction completion date 40 years $6 million *The period that the copyright ends.

A) Calculate Oz Furniture Ltd.’s decline in value (i.e. depreciation) claim under Division 40 ITAA97 in respect of the above mentioned assets for the year ended 30 June 2021. Please round all calculations to the nearest whole dollar.

B) Oz Furniture Ltd wishes to maximize its deduction and so please use the depreciation method that will maximize the deduction that can be claimed.

C) For any assets not eligible for depreciation claims under Division 40, please calculate what deductions are available.

Answer rating: 100% (QA)

Quiz a Oz Furniture Ltds depreciation claim under Division 40 ITAA97 in respect of the above mentioned assets for the year ended 30 June 2021 is as fo... View the full answer