An extract of the asset register of Alpha Pty Ltd ('Alpha') for the 2012-13 income year is as follows:
|
Asset
|
Cost
|
Opening Adjustable Value
|
Method
|
Effective Life
|
Decline in Closing
Value for Adjustable
This Period Value
|
|
Desktop Computer
|
1,350
|
1,350
|
Diminishing Value
|
3 years
|
450 900
|
|
Furniture
|
5,000
|
3,000
|
Prime Cost
|
10 years
|
500 2,500
|
|
Filing Cabinets
|
1,200
|
1,080
|
Prime Cost
|
10 years
|
120 960
1
|
All depreciable assets are for 100% business use and Alpha uses a low-value pool for all eligible assets. The closing value of the low-value pool at 30 June 2013 was $5,300. Alpha purchased a printer on S June 2014 for $700.
Advise Alpha of the income tax consequences arising out of the above information for the 2013-14 income year.