Gamy bought two jeep cars on 1 January 2023 for $110,000 (including GST) and $65,000 (including GST) each. He uses the cars entirely for income-producing purposes. The effective life of a car is eight years. Gamy is entitled to input tax credits of $5,886 in respect of the acquisition of each car.

Using the Prime cost method what is Gamy's depreciation deductions. Hint: The answer should be the sum of the two.

Answer rating: 100% (QA)

To calculate Gamys depreciation deductions using the Prime Cost method for both cars we can ... View the full answer