Tom owns a rental property and on 10 November 2019 he bought a kitchen table for the rental property at a cost of $275. The table had an effective life of 12 years.

Other depreciating assets used in the rental property had cost $15,000 in April 2017 and on 1 July 2019 had an opening adjusted value of $9,000. They had been depreciated using the diminishing value method. The effective life of these assets was 4 years.

Tom is also the sole owner of a transport business and is not using the SBE concessions for his business. His existing assets in relation to the transport business at 1 July 2019 were:

Item Cost Price OAV Effective Life

$ $ (in years)

Truck 1 25,000 20,000 7

Truck 2 37,000 35,000 10

Office Furniture 10,000 6,500 5

All this equipment was depreciated using the prime cost method

Transactions during the year:

Truck 1 was sold on 31 January 2020 for $27,000.

Truck 2 was painted at a cost of $3,000 on 15 August 2019.

The office furniture was sold on 31 March 2020 for $4,000 and new furniture was bought on that date for $25,000. The effective life of this furniture was 18 years.

On 15 June 2020 a filing cabinet was bought for $300. It had an effective life of 10 years.

Tom decided to use diminishing value for all new assets acquired during the current year.

Required:

Calculate the deductions to which Tom is entitled or the amounts to be included in his assessable income. He does not wish to use pooling.