Paul purchases a depreciating asset on 1 July 2013 for $60,000 and commences to use it in his business from that day two-thirds of the time, and one-third of the time for private purposes. The effective life of the asset is 6.25 years. He has chosen the prime cost method to depreciate this asset. He sells the asset on 30 June 2017 for $33,400. He is not a small business entity. Ignore GST.

You are required to: Calculate the income tax consequences of his ownership and sale of the asset on his 2016-2017 income year. Provide all calculations and present reasons for your answer, referencing applicable sections of the Income Tax Assessment Acts.