38 On 1 July 2020, a taxpayer that is not a small business entity acquired a new depreciating asset at a cost of $3,000,000. The taxpayer elects to use self-assessment to determine the effective life of the asset. The life of the asset is six years, with a residual value of $100,000. As the taxpayer wishes to maximise its deductions for the 2020-2021 tax year, it has chosen to use the diminishing value method in claiming a deduction for the decline in value of the asset. What is the decline in value for the year ended 30 June 2021 (ignoring the impact of any leap years)? Oa. $500,000 O b.$966,667 Oc. $1,000,000 Od. $483,333 QUESTION 39 Which of the following would be classified as a collectable for CGT purposes? O a. Autograph of Christopher Reeve who acted in the Superman movies (market value $50,000). b. All seven books in the Harry Potter series. OC. Famous Australian painting owned by a business. Od. A first edition copy of The Lord of the Rings by J.R.R. Tolkien. 13 QUESTION 40 In preparing the business activity statement (BAS) for the period July to September 2020, the following information is supplied. Total sales that are taxable supplies (including GST): $33,000 GST-free sales: $1,500 Export sales: $4,400 Purchases related to taxable supplies (including GST): $22.000 Input taxed supplies: $1,100 PAYG Income tax instalment: $5.000 PAYG withholding tax: $2.500 What amount will be remitted to the ATO for the September 2020 BAS? O a $8,500 Ob. $8,800 Oc. $8,900 O d. $8,400 QUESTION 41 What test is used to determine whether a partnership is a resident of Australia for taxation purposes? Oa Incorporated test Ob. None of the above Oc Domicile test for partnerships Od. 183-day test for partnerships