Sharon acquired a computer to be used at home to complete work at home she was unable to finish at her workplace. It cost $2,000. The purchase date Is 20 September Year 1 and was depreciated at 25% diminishing value. On 30 June Year 3 (current income year) she sold it for $2,350 and purchased a better computer for $4,320. Its effective life is 4 years. The computer was used 100% for work-related purposes .
Calculate the amounts deductible/assessable to Sharon for the current income year assuming she used the diminishing value method.

Answer rating: 100% (QA)

SOLUTION To calculate the amounts deductibleassessable to Sharon for the current income year we need to determine the depreciation expenses and the capital gain or loss from the sale of the computer H... View the full answer