A taxpayer is a non-SBE taxpayer. He has an Opening Balance in an existing Pool of $180,000. He has purchased the following 2 items on 1 November of the current income year:

Asset X at the cost of $900. It has a life expectancy of 15 years.

Asset Y at the cost of $145,000. It also has a life expectancy of 15 years.

The taxpayer would like to use the low-value pools where applicable and minimise his taxable income. What will be the rate of depreciation and the Decline in value for the current year for each of the items? Complete the answers in the spaces below. The schedule below will only permit you to write the depreciation rate and the decline in value. Only write the figures without the commas or the percentage sign.

UNIFORM CAPITAL ALLOWANCES EXISTING ASSETS AND NEW ASSETSDISPOSALSYEARITEMCPOAVRATEDAYSDecline in ValueCAVAV (at sale)SPB/A1/7Pool 180000 1/11X900 1/11Y145000

During the current income year, a taxpayer has an opening pool balance of $300,000. He sold most of the assets in the pool during the year for $350,000. Please state which of the following answer is correct?

Group of answer choices

All of the $350,000 will be assessable and the pool will be continued to be depreciated at the rate of 30%.

The balance of the pool will be reduced by $350,000 and the negative amount will be included in the assessable income as there are no balancing adjustments for a pool as the assets lose their identity in the pool.

There will be a balancing adjustment of $50,000 to be included in the assessable income.

There will be a balancing adjustment of $50000 to be available as a deduction.