Question
Part A. Andrew is employed as a salesperson of a solar company. His employer requires him to travel extensively during the year for work-related purposes.
Part A. Andrew is employed as a salesperson of a solar company. His employer requires him to travel extensively during the year for work-related purposes. With reference to relevant legislation, discuss the ways (methods) Andrew might be able to claim deductions for his car expenses (15 Marks) Part B. John, the owner of the solar company, purchased a Mercedes car and will be used 100% for business purposes on 1 November 2021 at a cost of $118,000 (inc GST) estimated to have a useful life of ten years. Required: With reference to relevant legislation, discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery and the car discussed above, using both prime cost and diminishing value methods (10 Marks)
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