(Small business asset pool, additions)

Q 1 Gwyneth is a resident, individual small business taxpayer. As at 30 June 2017, she had a General small business pool balance of $ 41,800.

During the year Gwyneth purchased an asset for $34,800 with an effective life of 5 years and another asset for $40,400with an effective life of 30 years.

There were no disposals during the year.

Required:

1. Calculate any amounts that are deductible for the 2017/18 tax year.
2. Calculate the closing balance of the asset pool.