11. Starting in 2022, employees at the Rouse Hill store will receive annual training. Universal performs all training inhouse using a dedicated facility that was established in 2020. The facility has an annual budget of $655,000 and inducts new employees in all aspects of the retail industry. Ordinarily, Universal would charge an armslength amount of $?5,000 per annum for staff training. However, the training division has sufficient spare capacity to train the Rouse Hill store's employees without the facility incurring any additional costs. The acoou nts department recommends internaliy invoicing the $?5,000 training expense to the House Hiil store each year. 12. For taxation purposes the new building has a twentyfiveyear life. However, Universal will perform the financial anaiysis of the Rouse Hill store over a tenyear period. The new store requires $300,000 of xture and ttings {F&F}. The ATD states that F&F have a sixyear effective life. In Universal's experience, F&F can be operated effectiveiy for a full (03 University of Technoiogy Sydney 3 ten years before they need replacing. Universal 's management accountants depreciate all assets over an operational veyear life. 13. Universal wili borrow $400,000 today to finance the Flouse Hiil store. The tenyear interestonly loan has annual interest repayments of $10,000 (assuming a 4% p.a. rate}. Universal's accountant confirms that interest payments are classified as a business expense and are therefore tax deductible