Reference no: EM132420593
(Disposal of depreciating assets)
Required: The following are all resident taxpayers. In each case, calculate the deduction available for decline in value as well as any assessable income (if any) arising from the disposals during the 2017/18 tax year.
(a) Trevor sold shop fittings from his retail store on 31 October 2017 for $3,700. The fittings had originally cost $5,600 and were depreciated using the diminishing value method using an effective life of 10 years. The opening adjustable value was $4,000 on 1 July 2017. The fittings were originally purchased in 2010/11. Decline in value on Trevor's other assets was $15,000.
(b) Hannah sold equipment from her factory on 31 May 2018 for $9,200. The equipment had originally cost $11,000 and was depreciated using the prime cost method using an effective life of 5 years. The opening adjustable value was $6,000 on 1 July 2017. Decline in value on Hannah's other assets was $1,700.
(c) Joe sold office equipment from his law practice on 1 November 2017 for $600. The office equipment had an original cost of $1,800 but was added to the low value pool in 2015 when it became a low value asset. The low value pool had an opening balance of $3,500 and there were no additions to the pool during the year.
|
What is the pretax cost of debt-jiminy cricket farm
: Jiminy's Cricket Farm issued a 30 year, 8%, semi-annual bond 3 years ago. The bond currently sells for 93% of its face value. The company's tax
|
|
Calculate roe and eps of the economic scenarios
: a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.
|
|
NSG2NMR Nursing And Midwifery Research Assignment
: NSG2NMR Nursing And Midwifery Research Assignment Help and Solution, La Trobe University - Assessment Writing Service - Discussing the internal validity
|
|
What is adjusted gross income in 2018
: Thelma works at a liquor store in 2018 and makes $44,000. She also has dividend income of $12,000 and interest income of $1,000.
|
|
Disposal of depreciating assets
: The following are all resident taxpayers. In each case, calculate the deduction available for decline in value as well as any assessable income
|
|
Calculate the closing balance of the asset pool
: Calculate any amounts that are deductible for the 2017/18 tax year. Calculate the closing balance of the asset pool.
|
|
Superannuation lump sum and income stream
: On 14 August 2017, Tammy Gochi, aged 53, retired from her job as chief executive officer of Megacorp Limited to commence service as a volunteer for Whalepeace
|
|
Partial main residence exemption
: Benita Ford, a resident taxpayer purchased a house on 30 June 2008 which she used as her main residence for 2 years until 30 June 2010.
|
|
Bill is the president of the company
: Bill hires Tom to be a salesman, and gives Tom the right to enter into contracts with customers for the sale of widgets made by the firm.
|