Question
On 1 July 2013, Maxta Ltd purchased a machine at a cost of $220,000 (GST inclusive) for use in its business. Maxta determined the machine
On 1 July 2013, Maxta Ltd purchased a machine at a cost of $220,000 (GST inclusive) for use in its
business. Maxta determined the machine to have an effective life of five years and claimed diminishing
value depreciation on that basis. Maxta used the machine only for business purposes and sold it for $99,000
(GST inclusive) on 30 June 2017.
1. Advise Maxta on the taxation implications of these transactions.
2. How would your advice differ if Maxta had sold the machine for only $55,000 (GST inclusive) to
a company that has the same shareholders as Maxta?
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Employment Law For Business
Authors: Dawn Bennett Alexander, Laura P Hartman
6th Edition
978-0073377636, 73377635, 978-0077347383
