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Fay runs a jewellery business from home. On 1 July 2021, Fay sold a computer for $4,000. The computer had an opening adjustable value

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Fay runs a jewellery business from home. On 1 July 2021, Fay sold a computer for $4,000. The computer had an opening adjustable value of $3,000 at 1 July 2021. This computer was depreciated using the diminishing value method with an effective life of 4 years. Fay has other assets for which the decline in value was $700. Task: (i) What is the Balancing adjustment for the computer? (ii) What assessable income, if any, would be generated by the disposal of Fay's computer?

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