Mr Lee commenced his business on 1 November 2014 and purchased the following asset in the first 17 months of operations: Date of purchase Purchase price /cost 2014 $ 1 November One second-hand motor car (30%) 20,000 1 November One set of office furniture (20%) 30,000 1 November 20 plastic baskets @ $20 400 2 December Two air-conditioners (20%) @ $6,000 12,000 10 December One desk calculator (30%) 300 2015 4 February Two typewriters (20%) @ $4,000 8,000 20 April One motorcycle (30%) 12,000 10 May One photocopier (20%) 10,000 10 July One delivery van (30%) 60,000 1 September Four second-hand lorries (30%) @ $5,000 20,000 20 November An air-conditioner plant (10%) to replace the two air-conditioners which were sold for $2,500 each 15,000 10 December One scooter (30%) to replace the motorcycle which was sold for $8,000 30,000 20 December The old calculator was scrapped and a new calculator was purchased (30%) 400 20 December 10 plastic baskets were scrapped and 20 new baskets were purchased @ $24 480 Mr Lee closes his accounts on 31 March each year. 

Required: Compute the depreciation allowances for the year of assessment 2014/15 and 2015/16.

Answer rating: 100% (QA)

Depreciation Allowances for Mr Lees Business 201415 201516 To calculate the depreciation allowances ... View the full answer