Question 1 An extract of the Asset Register of Ace Pty Ltd ("Ace") for the 2018 - 2019 Income year is shown as follows: Method Effective Decline in Closing Value for Adjustable This Period Value Asset Opening Adjustable Value Cost Life 1,200 1,200 Diminishing Value Printer 3 years |400 800 Desks 3,000 2,400 2,600 1,040 Prime Cost 10 years 300 2,100 Appliances Prime Cost 5 years 520 520 All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligible assets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840. Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
Question 1 An extract of the Asset Register of Ace Pty Ltd ("Ace") for the 2018 - 2019 Income year is shown as follows: Method Effective Decline in Closing Value for Adjustable This Period Value Asset Opening Adjustable Value Cost Life 1,200 1,200 Diminishing Value Printer 3 years |400 800 Desks 3,000 2,400 2,600 1,040 Prime Cost 10 years 300 2,100 Appliances Prime Cost 5 years 520 520 All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligible assets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a camera on 20 Jan 2020 for $840. Advise Ace of the Income Tax consequences arising out of the above information for the 2019 - 2020 Income year assuming Ace is not a small business entity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 1
An extract of the Asset Register of Ace Pty Ltd ("Ace") for the 2018 - 2019 Income year is
shown as follows:
Method
Effective Decline in Closing
Value for Adjustable
This Period Value
Asset
Opening
Adjustable
Value
Cost
Life
1,200 1,200
Diminishing
Value
Printer
3 years
|400
800
Desks
3,000 2,400
2,600 1,040
Prime Cost
10 years
300
2,100
Appliances
Prime Cost
5 years
520
520
All depreciable assets are 100% for business use and Ace uses a low-value pool for all eligible
assets. The closing value of the low-value pool at 30 June 2019 was $8,000. Ace purchased a
camera on 20 Jan 2020 for $840.
Advise Ace of the Income Tax consequences arising out of the above information for the 2019
- 2020 Income year assuming Ace is not a small business entity.
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