Alex purchased an E Class Mercedes Benz car and will be use 60% for business purpose on 1 May, 2019 at a cost of $132,000 (inc GST) 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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A: 1.

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