Because Bread Boy Bakery Ltd needed to increase its oven capacity, it ordered a new $100,000 oven on 15 March 2020. The oven was delivered on 1 May 2020.

• Bread Boy received a $16,000 trade-in on the old oven which had an adjustable value of $12,000.
• The cost of removing the old oven was $4,800, and the cost of installing the new oven was $10,000 (comprising $7,000 for strengthening the floor and $3,000 for special wiring for the increased electrical power needed).
• The new oven was first used on 15 May 2020.
• The Commissioner estimates bakery ovens to have an effective life of 15 years.

Required

Advise Bread Boy Bakery on what deductions (if any) may be claimed for the tax year ended 30 June 2020.