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Dowd EndN9 VIEW BEW MAUNGS ABC ABCD AaBbc Abocco ABC mohon Heading trading PUT DESIGN RT AA I u XX a. A. B Question 2 You must answer both A and B Theo purchased a truck for $67,000 to use in his business. The truck was purchased on 1 September 2017. The truck is used only for business purposes and Theo is not using the Small Business Entity method of depreciation. The effective le of the truck at the time of its acquisition was seven years. The accountant has advised that he should use the diminishing value method when calculating his depreciation claim Required A: (10 marks) Advise Theo how much he can claim for depreciation for the year ended 30 June 2018 in your response give reasons and refer to sections of legislation and cases, where relevant Click or tap here to enter text. AND On 1 July in the current income year, Cassie borrowed $100,000 and purchased a block of land for $120,000. Cassie intended to build a house suitable for hersel, her partner and their children to live in Soon after Cassie received an offer of $270,000 for the land The sale, and settlement took place in May of the same (current) income year. Cassie's interest expense was $15,000. Assume there are no other costs associated with the purchase of the land Required B (10 marks) Advise Cassie whether there is a capital gain or loss as a result of the above transactions - and the amount of that gain or loss, if any. in your response give reasons and refer to sections of legislation and cases, where relevant Click or tap here to enter text o el Home sors Of 1927 WORDS Prisen Type here to search 8 7. % 5 6