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On 31 March Year 1, Ben Quickly, a furniture removalist who was not an SBE taxpayer, bought a brand new to tonne van for $24,000.
On 31 March Year 1, Ben Quickly, a furniture removalist who was not an SBE taxpayer, bought a brand new to tonne van for $24,000. It proved too big for his business, and when he was offered $25,000 for it on 28th March Year 2 (previous year) he sold it, buying a one tonne van for $14,000. This proved too small and on 1 July Year 3 CY he traded it in for $12,000 on a second hand 2 tonne van which cost $7,500, receiving cash back. When this van broke down on 31st August CY, he sold it for $6,000 buying a new 2 tonne truck which he still has, cost $15,000. Each vehicle has an effective life of 10 years. Using the schedule below, to what deductions for depreciation would he be entitled for the income years ended 30th June Year 1, 30 June Year 2 and 30th June Year 3, assuming depreciation rate of 30% on a diminishing value basis for assets acquired in earlier years?|| UNIFORM CAPITAL ALLOWANCES EXISTING ASSETS AND NEW ASSETS DISPOSALS YEAR ITEM CP OAV RATE DAYS SP BIA Decline CAV in Value AV (at sale)
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