Adam is employed as a hairdresser. He also teaches hairdressing on some evenings at the Advanced College of Hairdos. Over the last year he has kept a log book which shows his car travel over a 12 week period is as follows: Salon to home 3,150 km Home to salon 3,150 km Salon to College 1,840 km College to Home 2,147 km Other Private travel 5,632 km Travel to Conference 900 km Adam's motor vehicle cost $36,200, has a 2.0 litre engine capacity and had an adjustable value of $28,200 as at 1 July 2014 and an effective life of 8 years. He incurred the following substantiated expenses: Fuel $ 5,200 Insurance 920 Registration 350 Service/Repairs 1,040 Road tolls (incurred in driving between the salon and home) 1,200 Speeding fine incurred travelling from salon to college 225 Required: Calculate Adam's maximum deduction for motor vehicle expenses. Show all available methods in your answer.
Adam is employed as a hairdresser. He also teaches hairdressing on some evenings at the Advanced College of Hairdos. Over the last year he has kept a log book which shows his car travel over a 12 week period is as follows:
|
Salon to home |
3,150 km |
|
|
Home to salon |
3,150 km |
|
|
Salon to College |
1,840 km |
|
|
College to Home |
2,147 km |
|
|
Other Private travel |
5,632 km |
|
|
Travel to Conference |
900 km |
|
Adam's motor vehicle cost $36,200, has a 2.0 litre engine capacity and had an adjustable value of $28,200 as at 1 July 2014 and an effective life of 8 years.
He incurred the following substantiated expenses:
|
Fuel |
|
$ 5,200 |
|
Insurance |
|
920 |
|
Registration |
|
350 |
|
Service/Repairs |
|
1,040 |
|
Road tolls (incurred in driving between the salon and home) |
1,200 |
|
|
Speeding fine incurred travelling from salon to college |
225 |
Required:
Calculate Adam's maximum deduction for motor vehicle expenses. Show all available methods in your answer.
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