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Problem - Jason Day commenced a business on 1 April 2018 and would like to claim maximum depreciation for the assets, which he purchased for his new business shown below.
Asset
Date of acquisition
Cost ($)
Oven
3 April 2018
20,000
Trays
10 May 2018
1,250
Van
19 May 2018
45,000
Tins
11 November 2018
700
Slicing Machine
8 January 2018
8,000
Inland Revenue's depreciation rates
Item
DV depreciation Rate (%)
SL depreciation rate (%)
10
7
40
30
20
13
8.5
Required - Calculate the amount of depreciation loss for the year ended 31 March 2019 for Jason's business assuming the pool method is used for all assets costing $5,000 and under.
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