Q1 Zac Harris operates a retail outlet selling kitchen utensils. During the 2017/18 tax year, Zac had the following transactions relating to his employees:

1. Zac paid net wages to his employees totalling $215,000.
2. As at 30 June 2018, there was one weeks worth of wages that remained unpaid amounting to $4,500. Zac made a journal entry accruing this amount as an expense.
3. Zac deducted $74,000 of PAYG tax from his employees wages. Of this amount, $9,000 was paid on 5 July 2018.
4. Zac paid a retiring employee $7,000 of annual leave entitlements on termination.
5. Zac paid an employee a redundancy payment of $15,000. The employee had given 7 years service to Zac.
6. Zac provided for an increase in annual and long service leave of $8,500.
7. Zac paid travel allowances amounting to $3,400.

Required: Identify which amounts are allowed as deductions for Zacs business for the 2017/18 tax year.

Q2 (Application of decline in value methods)

On 1 July 2017, Di Lifter commenced business operating a retail nursery. Di chooses to apply her own estimates of effective life to various assets purchased during her first year of trading.

Asset	Cost ($)	Date of Purchase	EffectiveLife (years)	Depreciation Method
Chemical Sprayer	40,000	1 July 17	10	Prime Cost
Temperature Gauge	12,000	1 July 17	6	Diminishing Value
Soil Elevator	37,500	1 Nov 17	15	Prime Cost
Deleafer	10,500	1 Feb 18	7	Diminishing Value

Required:

For each asset, calculate only the deduction for decline in value available to Di for the 2017/18 tax year.