Question
Can i get help with the below please. Please note: Australian Taxation System (Disposal of depreciating assets) Required: The following are all resident taxpayers. In
Can i get help with the below please.
Please note: Australian Taxation System
(Disposal of depreciating assets)
Required: The following are all resident taxpayers. In each case, calculate the deduction available for decline in valueas well asany assessable income (if any) arising from the disposals during the 2017/18 tax year.
(a)Trevor sold shop fittings from his retail store on 31 October 2017 for $3,700.The fittings had originally cost $5,600 and were depreciated using the diminishing value method using an effective life of 10 years. The opening adjustable value was $4,000 on 1 July 2017. The fittings were originally purchased in 2010/11. Decline in value on Trevor's other assets was $15,000.
(b)Hannah sold equipment from her factory on 31 May 2018 for $9,200. The equipment had originally cost $11,000 and was depreciated using the prime cost method using an effective life of 5 years. The opening adjustable value was $6,000 on 1 July 2017. Decline in value on Hannah's other assets was $1,700.
(c)Joe sold office equipment from his law practice on 1 November 2017 for $600.The office equipment had an original cost of $1,800 but was added to the low value pool in 2015 when it became a low value asset. The low value pool had an opening balance of $3,500 and there were no additions to the pool during the year.
(d)Tommy, an employee of Kwikee Couriers, sold a phone on 15 May 2018 for $50. He had purchased the phone in 2016 for $250 and had claimed the full cost of the phone as a deduction in that year
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