QUESTION ONE: Depreciation Julia runs the Scottish Hotel, located in Dunedin, New Zealand. The business holds a number of assets, some of which are included in the following table. Currently Julia uses the diminishing value method for depreciation. Cost $20,000 $30,000 Adjusted Tax Value (as at 1 April 2019) $10,000 $15,000 Asset Curtains Televisions (pooled for depreciation purposes) Spa pool Refrigerated cabinet $20,000 $4,000 $15,120 $1,500 . . You are given the following information in relation to the assets: On 1 June 2019 the curtains were sold for $4,000. On 1 October 2019, a new telephone system was purchased for the office at a cost of $250. On 16 August 2019, new kitchen utensils were purchased at a cost of $1,200. A pool was created for these items. On 1 December 2019, 5 new televisions were purchased costing $1,000 each. These were added to the existing pool. On 1 February 2020, the refrigerated cabinet was sold for $4,500. O Required: Calculate the annual allowable depreciation deductions for Julia for the year ended 31 March 2020, assuming that she wishes to maximise the amount claimed for depreciation for tax purposes. Your answer should include any adjustments made on the disposal of assets during the year. Show your workings. The Inland Revenue depreciation rates are outlined in the following table: Item Curtains Televisions Telephone Kitchen utensils Spa pool Refrigerated cabinet Diminishing Value Depreciation Rate (%) 25% 40% 67% 67% 16% 16% Straight Line Depreciation Rate (%) 17.5% 30% 67% 67% 10.5% 10.5%