Michael Convin, a single resident taxpayer aged 49, runs a sole trading business selling coffee machines. His business is registered for GST. During the year, Michael has had the following transactions in relation to sales, purchases, and inventory (trading stock. Michael did not choose Small Business Entity option). All GST exclusive unless states otherwise. Cash received from accounts receivable for credit sales $185,000 Cash paid to accounts payable for purchases of trading stock $78,000 Inventory (trading stock) on 1 July 2020 $3,000 Inventory (trading stock) on 30 June 2021 - at cost. $2,000 - at market selling. $1,500 - at replacement. $1,800 Ledger balances were as follows (GST inclusive) 1 July 2020 Accounts receivable $1,760. Accounts payable $1,540 30 June 2021. Accounts receivable $1,980 Accounts payable $1,430 Additional cash receipts included: (All GST exclusive unless states otherwise) Insurance recovery from the insurance company due to extensive damage caused by a hailstorm and included - Compensation for loss of income. $7,900 - Repairs carried out on shop caused by storm damage $2,700 - Medical costs incurred by Michael form injuries $900 Capital contributed by Michael to expand the business $10,000 Proceeds from sale of existing motor vehicle (adjustable value $6,500) $9,000 Cash payments included: Cash Drawings by Michael $3,000 Fines for breach of Australian Customers regulations $900 Net wages to employees $12,000 PAYG withheld from employees and paid to the ATO $2,900 Superannuation for employees $1,230 Superannuation guarantee charge $190 PAYG instalments for Michaels personal tax commitments $2,500 Other deductible expenses $14,000 Purchase of motor vehicle BMW (40% used for business, useful life 8 years, purchased on 1 May 2021). $89,000 Purchases of new coffee machine (100% business usage, useful life 10 years, purchased on 1 August 2020). $62,000 Other information regarding Michaels Business (1) Other deductible expenses above include all assets decline in value except for newly purchased assets, i.e., BMW motor vehicle and Coffee machine. (2) Michael has taken home a coffee machine from the stock purchased for private use at total value of $1,200. Required Advise Michael Convin his net tax liability payable (including all possible tax offsets) to the ATO. He wishes a maximum deduction for 2020/21 tax year. Ignore SBE concession.