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Advise toby on the income tax consequences arising

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Reference no: EM132919065

On 1 June 2018, Toby purchased a new truck to use in his business for $650,000. The Commissioner's effective life for the truck was 3 years. Toby decided to upgrade to a new Tesla-battery powered truck and sold his old truck to a 2nd hand truck dealer for 325,000 on 31 August 2019. Toby estimates he used his truck for business purposes for about 90% of the time.

Prioblem 1: Advise Toby on the income tax consequences arising for him as a result of the disposal of the truck under BOTH:

(a) the Prime Cost Method; and

(b) the Diminishing Value Method. Assume Toby is not a small business entity.

Reference no: EM132919065

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