Question 6d

Toby is a self-employed plumber. He has a lot of tools and equipment, so he uses the pool method to depreciate them.

At 1 April 2022 the opening adjusted tax value of the pool was $21,630. The depreciation rate for the pool is 16% DV.

During the year he sold pool assets for $1,975. On 31 August 2022 he purchased a mobile air compressor for $2,931 (with an applicable depreciation rate of 20% DV) which he wants to add to the pool.

Task

Using this information calculate to the nearest dollar.

i. The depreciation deduction for the pool for the 2023 tax year.

ii. The opening adjusted tax value for the 2024 tax year.