In the 2022/23 income year Hot Sauce Pty Ltd sold a piece of machinery used 100% in its business. The machinery had been depreciated using the diminishing value method. It was purchased for $185 000 on 1 july 2021 and had an effective life of 5 years. The machinery was sold on 1 September 2022 for $105500. 

Required Calculate the: 1. decline in value deductions available to Hot Sauce for each year the machinery was held 

2. balancing adjustment upon disposal

Answer rating: 100% (QA)

Calculate the decline in value deductions and the balancing adjustment upon disposal for the machine... View the full answer