Colin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). This machinery is 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 Mercedes Benz car discussed above, using both prime cost and diminishing value methods

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
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Colin purchased a machine on 1st August 2019 at a cost of $462,000 (including GST). This
machinery is 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 Mercedes Benz car discussed above, using both prime cost and diminishing value
methods

 

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