tax law

On 1 June 2016, Tommy bought a new coffee cart (Effective life of 10 years) for $35,000. The cart was used exclusively for work purposes. Tommy opted to use the PCM to calculate depreciation on the cart. Tommy sold the coffee cart on 10 July 2020 for $20,000. (Assume each financial year has 365 days) Disregard the 100% write off method for this question. Required: Calculate the Balancing Adjustment amount and indicate by using + or - whether the amount will be treated as Assessable Income, or whether Tommy can claim the amount as Tax Deductible. Examples (Please do not use dollar signs or commas or full stops!!): If you believe Tommy will have to add $5,000.17 to his assessable income, write +5000 Or, if you believe Tommy can claim $5,000.17 as a deduction, write -5000 Annor