Question 8.25

Rory derives business income from a retail cosmetics store. On 1 October 2019, Rory bought a Mercedes for $78,340. Its effective life is eight years. Rory kept a logbook for 12 weeks which disclosed the following:

Travel from home to the shop and return2735km

Travel from the shop to college(Rory is studying a course in fitness training)370km

Travel from college to home735km

Travel to customers and suppliers3460km

The logbook is representative of the entire year. Odometer records showed a total of $23840 kilometres travelled during the period up to 30 June 2020. Rory also kept receipts and records which show the following costs:

Petrol and repairs$2850

Excess on Insurance for repairs$600

Car washes$930

Registration and insurance$1735

Parking at Airport (during a business trip)$380

Determine the maximum amount of any deductions available to Rory.