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A.          RK Co purchased a machine on 1st November...

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A.          RK Co purchased a machine on 1st November...

A.          RK Co purchased a machine on 1st November 2020 at the cost of $110,000 (inclusive of GST) and exclusively used it to manufacture for the Co's production. The machine's effective life is ten years.


B.          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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Answered by UltraCaterpillarMaster81 on coursehero.com

 

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sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellen

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