Butterfly Pty Ltd is a small business that utilizes the low value pool for its fixed assets for all its eligible assets. All depreciable assets are 100% used for business purpose, and the closing low value as at 30 June 2019 was $6,250. Shown below in the table is the asset register for Butterfly Pty Ltd as at 30 June 2019. Asset Cost Opening Adjustable Value Method Effective Life Decline in Value for This Period Closing Adjustable Value MacBook Pro 4,000 2,400 Diminishing Value (assume 40% rate) 5 years 960 1,440 MacBook Air 1,300 1,300 Diminishing Value 3 years 450 850 Office Equipment 10,000 7,000 Prime Cost 10 years 1,000 6,000 Furnitures 1,200 1,080 Prime Cost 10 years 120 960 Note - Butterfly purchased a printer on 8 May 2020 for $750 and Butterfly also purchased a TV for the meeting room on 2 June 2020 for $900

 Required: Calculate the “decline in value” of the depreciable assets that Butterfly can use as deductions for the 2019-2020 income year.

Answer rating: 100% (QA)

ANSWER The decline in value of depreciable assets that Butterfly can use as deductions for the 20192020 income year is 1920 CALCULATION MacBook Pro Co... View the full answer