Andy purchased a Toyota car and use it 100% for business purpose on 1st October 2020 at the cost of $74,000 (inclusive GST), estimated to have a useful life of twelve 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 car discussed above, using both prime cost and diminishing value methods.

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Q: Lina purchased a new car for use in her business during 2020. The auto was the only business asset…

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Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

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Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

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Q: equired: With reference to relevant legislation and case law, discuss and calculate what amount is…

A: Introduction: Depreciation: Depreciation is a charge on the fixed assets that reduces its value.…

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Q: Allan’s employer purchased a car in March 2019 at a cost of $88,000 GST inclusive and provided the…

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A: Tax laws can be defined as the governing laws which helps the companies or the taxpayers to take…

Q: On May 1 , 2020, Helen places in service a new automobile that cost $25,000. It was the only asset…

A: Any expenditure (other than covered under section 30 to 36) shall be allowed if the following…

Q: Colin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). This machinery…

A: Definition: Prime Cost method: It is known as the straight-line depreciation method. Depreciation…

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A: Sec 179 expense allows expensing of the cost of purchase of qualified business property. It limits…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is a charge applied to assets at the conclusion of a period that reduces their entire…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Modified Accelerated Cost  Recovery System allows the taxpayer to claim…

Q: On April 5, 2020, Kinsey places in service a new automobile that cost $38,750. He does not elect §…

A: PLEASE LIKE THE ANSWER:  Answer:   2020= $           7,070  2021= $         11,270

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Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

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Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation refers to the amount that is charged on the fixed assets by which the asset value…

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Q: On May 28, 2020, Mary purchased and placed in service a new $60,000 car. The car was used 60% for…

A: 1.

Q: A. RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and…

A: Prime Cost Method Under using Prime cost method the decline value of the assets it deduct the value…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: Depreciation refers to the concept of computing the reduction in the value of an asset incurred…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: As per luxury auto cap , maximum depreciation allowed is determined for luxury vehicles. We assume…

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Q: On January 1, 2020, Coronado Industries purchased a machine costing $346000. The machine is in the…

A: The question is based on the concept of Business Accounting.

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This…

A: Prime cost method: It is also called as straight-line method; in this method the value of asset…

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Q: On February 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to…

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Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: SOLUTION- SEC 179 IS GENERALLY NOT ALLOWED FOR VEHICLES .   HOWEVER IF VEHICLE IS MORE THAN 6000…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

A: MACRS stands for modified accelerated cost recovery system which is a system of depreciation and it…

Q: Allan’s employer purchased a car in March 2020 at a cost of $44,000 GST inclusive and provided the…

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Q: A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This…

A: Prime Cost method: It is known as straight-line depreciation method. Depreciation records the usage…

Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…

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