(Disposal of depreciatingassets)

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 taxyear.

1) 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.

2) 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.

3) 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.

(Please show your working )

The following questions are based on the material inChapter 12:

Q20.12.7

(Tax losses, partner inpartnership)

The following data relates to Stephanie Garner, a resident taxpayer. Stephanie derives income from a public relations business and is also a partner in a marketing business.

this photo is for question 20.12.7

General business deductions are separate from personal superannuation, gifts, partnership losses and losses of previousyears.

Please assume that the necessary tests have been satisfied such that any partnership losses from Stephanie's share in the marketing business may be deducted from other income as appropriate.

Required: For each year, determine Stephanie's Taxable Income and any lossesthatmay be carriedforward

Please show your working

2015/16 2016/17 2017/18 Assessable business income $ 93,400 $ 126,000 $ 133,400 General business deductions 80,000 129,000 119,200 Share of Partnership Net Income (Loss) (21,800) 14,900 (5,600) Superannuateon and Gifts 4,000 11,000 8,000 Net exempt income 1,500 3,000 2,000