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Bull at a Gate Fabrications Pty Ltd is a manufacturing business based in Sydney. Their company tax rate is 30%. It is considering the replacement

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Bull at a Gate Fabrications Pty Ltd" is a manufacturing business based in Sydney. Their company tax rate is 30%. It is considering the replacement of a manually operated machine with a fully automated model. Currently 6 full-time operators are needed to operate the machine. This labour costs the company $320,000 p.a. in wages, holiday pay and compulsory superannuation payments to the employees' selected funds. In addition, maintenance costs are $32,000 per year The machine was bought 4 years ago for $200,000. The Australian Tax Office schedule includes the asset in the 12 year useful-life category and only allows prime cost depreciation (with no residual) for this type of plant and oquprnont. I ho compeny bolovod that thonachino nonna hy would bo taken out service at the 12-year point. The current disposal value of the machine presently in use is $50,000. The new model has a purchase price of $570,000. It is estimated that shipping and installation would cost $30,000. Maintenance on the Bull at a Gate Fabrications Pty Ltd" is a manufacturing business based in Sydney. Their company tax rate is 30%. It is considering the replacement of a manually operated machine with a fully automated model. Currently 6 full-time operators are needed to operate the machine. This labour costs the company $320,000 p.a. in wages, holiday pay and compulsory superannuation payments to the employees' selected funds. In addition, maintenance costs are $32,000 per year The machine was bought 4 years ago for $200,000. The Australian Tax Office schedule includes the asset in the 12 year useful-life category and only allows prime cost depreciation (with no residual) for this type of plant and oquprnont. I ho compeny bolovod that thonachino nonna hy would bo taken out service at the 12-year point. The current disposal value of the machine presently in use is $50,000. The new model has a purchase price of $570,000. It is estimated that shipping and installation would cost $30,000. Maintenance on the

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