Question
A taxpayer owns a large business with less than $5 billion turnover. He has an Opening Balance in an existing Pool of $180,000. He
A taxpayer owns a large business with less than $5 billion turnover. 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 ASSETS YEARITEMCP OAV RATE 1/7 Pool 180000 1/11 X 900 1/11 Y 145000 DISPOSALS DAYS Decline in Value CAVAV SPB/A (at sale)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started