Question
Q1 Goodfood Pty Ltd purchased a fridge for $25,000 on 1 January for 100% business use. The effective life of the fridge is 10 years.
Q1 Goodfood Pty Ltd purchased a fridge for $25,000 on 1 January for 100% business use. The effective life of the fridge is 10 years. If the company uses the prime cost method to calculate the depreciation, the depreciation for that financial year should be ______.
Select one:
a. $20,000
c. $5,000
d. $1,250
Q2 Goodfood Pty Ltd purchased a fridge for $25,000 on 1 January for 50% business use. The effective life of the fridge is 10 years. If the company uses the prime cost method to calculate the depreciation, the business depreciation for that financial year should be ______.
Select one:
a. $10,000
b. $2,500
Q3 Goodfood Pty Ltd purchased an industrial fridge for $50,000 on 1 January. It has an effective life of 10 years. If the company chooses to use the diminishing value method, the decline in value in that financial year would be _______.
Select one:
a. $12,500
b. $5,000
c. $2,500
Q4 Daniel, a non-small-business entity taxpayer, acquired a camera on 1 July 2017 for $850. The camera has an effective life of 5 years. The camera is used for income producing purposes. The decline in value of the camera using low-value asset pooling would be _____ for the 2019 financial year.
Select one:
b. $259
c. $130
d. $159
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