1. What is a depreciating asset for the purposes of ITAA 1997?

a. For an asset to qualify for depreciation allowances, it must have a minimum life of four years.

b. A depreciable asset is defined in s 40-25 as any asset with a value of more than $2000 that is purchased by a business.

c. A depreciable asset includes all assets used in the business, including land, trading stock and software.

d. A depreciating asset is an asset that has a taxable purpose which is to produce assessable income.

2.

Which of the following statements is correct?

a. Software cannot be depreciated

b. Land is an asset that can be depreciated

c. Trading stock which reaches its use by date can be depreciated

d. Capital allowances can be apportioned between different purposes

3.

For Pt IVA ITAA 36 to apply, which element is critical?

a. There must be a taxpayer involved.

b. There must be a scheme entered into, with sole or dominant purpose of obtaining a tax benefit.

c. There must be a benefit.

d. There must be income or deductions involved.