Question 3 Kezza runs a small business. Her opening stock for the current income year was $4,000. During the year there was sales income of $30,000 and purchases of $5,000. Trading stock valued at $500 was destroyed due to water damage. The closing balance of stock at the end of the current income year was $6,000 and reflects the reduction due to stock damage. What is the taxable income from trading for the current income year? Question 4 A non-current asset is a depreciating asset. It initially had a depreciation cost base of $45,000, it cost $2,500 to transport and install the item, and it has an effective life of 5 years and was purchased on 1/7/15. It was sold on 1/4/17 for $27500. Required State the relevant legislative provisions and calculate: 1. the depreciation expenses for each relevant year income year under both depreciation methods 2. any assessable or deductible balancing adjustment associated with this disposal. Assume that the diminishing value method is used to calculate the depreciation expense