Paula, a resident, is a marketing consultant who carries on her own business. Her motor vehicle log book indicates that she has used her Volkswagen car 65% of the time for work related purposes and 35% for private purposes. Paula purchased her car on 1 January of the previous tax year for $43 000 and it had an effective life at the time she acquired it of 8 years. Paula depreciates her car using the diminishing value method. What amount can Paula claim as a deduction for depreciation on the car for the current tax year ended 30 June (nearest $1)? Hint - you must first calculate depreciation for the previous tax year.

Select one: 1. $3465. 2. $9417. 3. $6424. 4. $5331. 5. $6121.