* Assume all taxpayers are NOT an SBE unless the question states otherwise

Elizabeth, an engineer, purchased a new computer to use 60% of the time for work purposes and 40% of the time by her two teenage children to do their home work and assignments. The cost of the computer was $2700 and she purchased it on 1 June of the previous income tax year. Assuming that the computer has an effective life of 3 years and she uses the diminishing value method of depreciation what amount will be the adjustable value (to the nearest $) at 30 June of the current tax year?

Hint - you must first calculate depreciation for the previous income year.

Select one:

1.

$1021.

2.

$851.

3.

$1701.

4.

$511.

5.

$148.