Assignment task: Mumu is a small business taxpayer with a sales turnover of $3m. At 1 July 2021, the balance of the taxpayer's Small Business Depreciation pool was $74,666. During the year ended 30 June 2022, Mumu entered into the following transactions:-
Date Transaction Amount excluding GST mce_markernbsp; Effective Life
(years)
1 Dec 2021 Purchased cash register 880 3
2 Jan 2022 Purchased car 67,136 6
All assets, including the car, are used 100% for business purposes.
In May 2022, Mumu sold a car used 100% for business for $12,500. The car cost $30,000 when it was purchased on 1 July 2017.
Required:
Q1. Calculate the maximum income tax deduction available to Mumu for the year ended 30 June 2022 in relation of the above depreciating assets. Show all workings.
Q2. Calculate the closing balance of Mumu's Small Business Depreciation Pool at 30 June 2022. Show all workings.