Mumu is a small business taxpayer with a sales turnover of $3m. At 1 July 2021, the balance of the taxpayers Small Business Depreciation pool was $74,666. During the year ended 30 June 2022, Mumu entered into the following transactions:-

Date Transaction Amount excluding GST $ Effective Life

(years)

1 Dec 2021 Purchased cash register 880 3

2 Jan 2022 Purchased car 67,136 6

All assets, including the car, are used 100% for business purposes.

In May 2022, Mumu sold a car used 100% for business for $12,500. The car cost $30,000 when it was purchased on 1 July 2017.

Required

i) Calculate the maximum income tax deduction available to Mumu for the year ended 30 June 2022 in relation of the above depreciating assets. Show all workings. 4 marks

ii) Calculate the closing balance of Mumus Small Business Depreciation Pool at 30 June 2022. Show all workings. 4 marks

Total 8 marks