Discuss and calculate what amount is allowed as a deduction

Assignment Help Accounting Basics
Reference no: EM132542740

Question - Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This machinery is estimated to have a useful life of seven years. Alex purchased a Holden car on 1 May, 2019 at a cost of $63,000, estimated to have a useful life of five years.

Required - With reference to relevant legislation and case law, discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery and the Holden car discussed above, using both prime cost and diminishing value methods.

Reference no: EM132542740

Questions Cloud

Define transfer pricing : Define transfer pricing. Discuss the benefits of any three method of transfer pricing outline which would be most suitable to aid in Toyota's strategy.
Write the oxisation and reduction : Write the oxisation and reduction when Magnesium Mg, is immersed in each of the following soutions:
Describe the cognitive and non-cognitive abilities : Describe the cognitive and non-cognitive abilities relating to Emotional Intelligence. Provide an example of how you might use EQ in your daily life.
Condensed structural formula equation : Write condensed structural formula equation for each of the reactions below. ie. CH3-CH2-CH3 would be the condensed structural equation for propane
Discuss and calculate what amount is allowed as a deduction : discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery and the Holden car discussed above
Describe an intervention to change the motivation : Use the theory of motivation you selected to describe an intervention/action to change the motivation/behavior and correct the performance problem.
What is the lowest transfer price that will ensure : What is the lowest transfer price that will ensure that both divisions will voluntarily participate in the transfer (ie, if the price was lower than this level)
What is the amount to be taken : What is the amount to be taken to prepare 200 ml of 100 ml Fe (NO3) 3.9H2O solution from 5 ml 50% Fe (NO3) 3 stock solution prepared by using Fe (NO3) 3.9H2O sa
Wealthy businessman with lots of current cash on hand : This part requires you to use your imagination, be creative; learning should be fun too! Pretend I am a wealthy businessman with lots of current cash on hand

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the product margins for the xactive

Compute the product margins for the Xactive and the Pathbreaker products under the company's traditional costing system

  Prepare journal entries for forward contract and firm

The company has an incremental borrowing rate of 12%. It must close its books and prepare third-quarter financial statements on September 30, 2010. Prepare journal entries for the forward contract and firm commitment.

  Calculate cost of goods sold

Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. Calculate cost of goods sold for 2013, 2014, and 2015

  How much was net income understated or overstated

A company makes an accrued revenue adjusting entry for $780 and an accrued expense adjusting entry for $510. How much was net income understated or overstated?

  What method yields the highest depreciation expense

Waylander Coatings Company purchased waterproofing equipment on January 6, 2015, What method yields the highest depreciation expense for 2015

  Create the financial statements

On 1/1/13 Karitas Inc., a calendar year company, is created with an equity investment of $720. On the same day the company purchases 1 share of stock.

  Problem on Municipal Responsibility Accounting

Municipal Responsibility Accounting After barely avoiding bankruptcy, New York City established one of the most sophisticated budgeting and reporting systems.

  How much is the value of the ending inventory on august

Using the FIFO inventory method in a perpetual inventory system, how much is the value of the ending inventory on August 31

  On january 1 2011 nana company paid 100000 for 8100 shares

on january 1 2011 nana company paid 100000 for 8100 shares of papa company common stock. these securities were

  The company capitalizes research and development expenditure

Calculate EVA for 2014. Assume that for purposes of calculating EVA, the company capitalizes research and development expenditures

  What is the controllable a margin for the year

Hilbert Company recorded operating data for its shoe division for the year. What is the controllable a margin for the year

  Explain challenge for us public company to fully adopt ifrs

Evaluate the challenges for u.s. public companies to fully adopt ifrs and propose solutions to these challenges. Provide support for your recommendations.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd