Problem:
How do you calculate the deduction for decline in value if a taxpayer purchases equipment costing $50,000 on 1 April 2020 in Australia. The equipment has an effective life of 5 years and the taxpayer applies the small business concession for capital allowance. Note: the book says the answer is $7,500 but why did they calculate the cost of the equipment by 15%?
Calculate the deduction for decline in value if a taxpayer purchases equipment costing $50,000 on 1 April 2020. The equipment has an effective life of 5 years and the taxpayer applies the small business concessions for capital allowances. ) $15,000 ) $5,625 ) $20,000 ) $7,500 O None of the above