WEEK 7 (Tutorial 5) Question 1 ABC Pty Ltd is an Australian company that runs a printing press. On 1 December 2021, one of the major pieces of equipment that ABC Pty Ltd uses in their business caught on re. The machine had been purchased (and installed) on 1 September 2020. The cost of the machine was $90,000. The machine had an effective life of 15 years and the company had always used the primecost method to calculate the decline in value. Due to the fire, the machine was destroyed. The machine was insured, and the company received an insurance payment of $70,000 on 1 March 2022. (a) Advise ABC Pty Ltd on the tax treatment of the transaction in regard to the 2021 2022 income year (Le. explain whether any amounts will be assessable income or an allowable deduction, and if so, calculate the relevant amounts.) (b) How would you answer change if the company had been using the diminishing value method to calculate the decline in value