Bronwyn Murray operates a clothing store in Brisbane as a sole trader. This business specialises in selling evening gowns and cocktail dresses to members of the public and it is registered as an enterprise for Goods and Services Tax (GST). Bronwyn comes to you for advice about seven separate questions in relation to her 20202021 income year ending 30 June 2021, and her Fringe Benefits Tax year ending 31 March 2021.

Bronwyn does not use the provisions of Div 328 ITAA97 to claim capital allowances. The turnover of her business is less than $20 million annually.

The value of Bronwyns low value pool on 1 July 2020 is $6,450.

During the 20202021 income year Bronwyn purchases the following capital assets:

• On 1 October 2020 she purchases a notebook computer for $1,200 (GST inclusive). She uses the notebook computer from that date to find and order trading stock for her business (60% of the time), and for the remainder of the time (40% of the time) she uses the notebook computer to watch movies online in her free time. The effective useful life of the asset is 3 years.
• On 1 December 2020 she purchases a steam iron for $250 (GST inclusive) that she uses exclusively in her business from that date to steam new trading stock items when she unpacks these. The effective useful life of the asset is 3 years.
• On 1 March 2021 she purchases a delivery truck for $65,000 (GST inclusive) that she uses from that date to collect trading stock from suppliers. The effective useful life of the asset is 7 years. She incurs the following running expenses in relation to this truck from 1 March 2021 to 30 June 2021:
  • Fuel $2,340
  • Insurance $770
  • Annual vehicle registration paid to Queensland Transport $1,500Calculate and discuss the income tax consequences arising from all of the information in Question. Show all your calculations and provide reasons for your answer. Your answer should reference relevant sections and divisions of the Income Tax Assessment Acts. (10 marks)Present your answer in the following table format:

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