Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Corporate Finance

Authors: Laurence Booth, Sean Cleary

3rd Edition

9781118300763

Students also viewed these Accounting questions

Question

=+d) Is this likely to be a good prediction? Why do you think that?

Answered: 1 week ago