Required: Ross asks you to draft him a letter advising him as to how much is tax-deductible to the company in relation to this transaction for the year ended 30 June 2021. Please show your calculations.

PBL 1 - Part A (Discussion and Group Written Submission - 6%) - AOL KS1.1: One of your clients, Ross Wilson, is the sole director and sole shareholder of Eagle Rock Real Estate Pty Ltd. | The company has several real estate offices, specialising in sales, marketing and property management of residential properties. The company has three offices one in Taringa, the second in South Brisbane and the third in Kedron. The company is registered for the GST and accounts for the GST on the non-cash (accruals) basis. The company was incorporated in Australia in June 2014. The company had a turnover of $4.2 million in 2020 and is expecting a turnover of approximately $5.4 million for the 2021 financial year. Ross informs you that on 14 November 2020, the company acquired a new motor vehicle, being a 2020 Volkswagen Polo 70TSI Trendline, which was financed via a chattel mortgage agreement. A copy of the tax invoice for the purchase of the new car is attached for your reference on the following page. va Polo 2020 Volkswagen Polo 70TSI Trendline Mt Gravatt Volkswagen TAX INVOICE ABN: 65 163 974 481 750 Logan Road Mount Gravatt, QLD, 4122. Volkswagen SOLD TO: INVOICE NUMBER: INVOICE DATE: ORDER NUMBER: SALES REPRESENTATIVE: 246546 14 November 2020 14468 Mr Eric Carmen Mr Ross Wilson Eagle Rock Real Estate Pty Ltd 48 Marshall Road Mount Gravatt, QLD, 4122. SCRIPTION 2020 Volkswagen Polo 70TSI Trendline Energetic Orange Metallic Paint Personalised Number Plates "Eagle Rock" Queensland registration fee * Compulsory third party (CTP) insurance * Dealer delivery charges Stamp duty 22,840.00 750.00 1.500.00 506.40 422.70 2,348.00 780.90 Total amount payable (drive away price): $ 29,148.00 Payments received: Volkswagen Financial Services Australia - chattel mortgage $ 29,148.00 Balance due: $ 0.00 Amounts are shown inclusive of GST (where applicable). All amounts shown above totalling $29,148 have been charged to the customer by the motor car dealership. Assume that in this PBL, the CTP insurance of $422.70 shown above is exclusively GST-free. In practice, CTP insurance has a component that is GST-free (the stamp duty component) and a component that is taxable. There is no GST on the registration fee. Hint: For each of the costs detailed above that make up the total of $29,148, students need to work out which costs would be capitalised (and therefore form part of the cost of the motor vehicle in the Balance Sheet) and which costs would be expensed to the Income Statement