A. Aran Pty. Ltd., a non small business taxpayer, acquired plant on 9 Jan 2021 for $155,000. The effective life is 5 years.

Required

i) Calculate the capital allowances for year ended 30 June 2022 as per Prime Cost Method. Show all workings.

ii) Calculate the capital allowances for year ended 30 June 2022 as per Diminishing Value Method. Show all workings. 6 marks

B. On 3 February 2022, Aran Pty. Ltd, non small business taxpayer, purchased 64 chairs at $975 each. The effective life for chairs are 8 years.

Required

Calculate the maximum deduction for decline in value of the chairs. Show all workings. 2 marks

Total 8 marks