I do not know how to get the net business income.

8. Claire operates a catering business from a small factory outlet which she leased last year. The lease is for 5 years and the lease preparation costs were $3,900. At 30 June PY she had the following assets, all of which were depreciated using the diminishing value method and none of which had been purchased prior to 10 May 2006 $ Assets in a low-value pool 12,800 Commercial stove (cost $10,200, effective life 8 years) 5,400 Commercial oven (cost $8,900, effective life 10 years) 7,700 Pasta making plant (cost $2,500, effective life 28 years) 2,000 Computer (cost $5,500, effective life 5 years) 3,000 Food heating unit (cost $2,000, effective life 6 years) 930 During the current year, she bought the following assets: New printer on 7 May 990 New stove, to replace existing stove. The purchase was made on 15 July and she received a trade-in of $6,000 on her old stove. The effective life was also 8 years. 15,650 New computer to replace existing computer on 24 December. She sold the old computer to her brother for $1,500 which was what the vendor had offered her as a trade-in on the old computer. Its effective life was 5 years. 6,720 New refrigerated van on 1 October. It had an effective life of 10 years. 33,000 During the current year, Claire sold a small portable fridge which was in the low- value pool for $840. She also decided to move the food heating unit into the low- value pool. Claire's income for the year is as follows: Cash received 170,000 This included $20,000 from functions in May and June of the prior year. Outstanding from the current year's functions were $28,500. Interest 2,780 Claire's expenses were as follows: Accounting fees 900 Wages to staff 30,000 Food 60,000 Stamp duty on new van 2,145 Stamp duty on loan to buy new van (3 year loan taken out on 1 October) 120 Lawyer's fees for review of loan contract 550 Fuel 2,860 Insurance 1,500 Calculate Claire's taxable income and net tax payable including Medicare levy for the current year assuming she wishes to minimise her tax payable and is a SBE taxpayer. In earlier years she did not use the UCA option but used the low-value pool and general depreciation. In the current year she wishes to use the UCA option available for SBE taxpayers. 300 Sales -as a trading business, use accruale method (10,000 - 20.000 + 8.500 ) Interest Assessable income 2.30 900 60,000 30,000 167 Lees Allowable Deductions: Accounting rees Food wages to staff Stamp dutu on new van - capital expense Stamp duty on loan to buy new van 3 yrs 1.095 days Lawyer's fees for review of loan contract - incurrec last year would have been deducted last year Hence $120 + $ 550 - $ 670 $ 670 $ 0.61 1,095 from ol Jul to ol Oct > 273 days $0-61 * 27 3 days - $ 167 fuel Insurance Depreciation - Low-value pool Depreciation - SBE pool Taxable income 2.860 1,500 15,149 33,740 130.316 46,964 6,810.30 Taxon Taxable income (3,572-00 + 32-5% 637,000 + 46,964)) Plus: medicare levy (2%X $ 46,964) 939-28 17,749.58 1,002.30 Less :LMITO (255 + -s% C 46,764 - 37,COO)) Less : LITO ( $445-00 - [C46,964 -37.000 ) *0.01s ] Less: Small Business Tax offset 295-54 523.01 1,820 85 15,928.73 Small Business Tax Offset : tep 1 - WONIcout the proportion Net business income Taxable income Low-value Pool - this will continue to be depreciated as a low-value pool Assets in a low value pool 12,800 37-5% 4.60o 8.000 Food heat cost 930 X 37.5% 349 581 (840) Sale of small fridge Closing value of low-value pool 5,149 7. 201 SEE Pool Assets which cost less than $ 30.000 New printer 990 New stove 15.650 6220 New computer 23, 360 100% 23.360 12,670 78.100 Opening pool balance -put in closing value of non-pooled assets. 30% 5:430 CUCA) Opening balance (5,400 + 7,700 + 2,000 + 3,000) New asset-van refrigerated 33.000 15% 4.950 rule 28, oso 40.720 Assets sold i Stove (6,000) (1,500) (7,500) computer (7,500) 33,220 Closing pool balance Total pool depreciation 33.900