Sarah operates a printing business in Sydney. On 1 July 2018 she bought a new printing press for $200,000. The press was used 100% for business purposes and has an Effective Life of 8 years. Sarah opted to use the PCM to calculate depreciation. On 5 July 2020, Sarah sold the printing press. Required: Calculate the Balancing Adjustment and discuss the tax consequences if Sarah sold the press for: (a) $200,000 (b) $149,657.53 (c) $100,000
Sarah operates a printing business in Sydney. On 1 July 2018 she bought a new printing press for $200,000. The press was used 100% for business purposes and has an Effective Life of 8 years. Sarah opted to use the PCM to calculate depreciation. On 5 July 2020, Sarah sold the printing press. Required: Calculate the Balancing Adjustment and discuss the tax consequences if Sarah sold the press for: (a) $200,000 (b) $149,657.53 (c) $100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarah operates a printing business in Sydney. On 1 July 2018 she bought a new printing press for $200,000. The press was used 100% for business purposes and has an Effective Life of 8 years. Sarah opted to use the PCM to calculate
Required: Calculate the Balancing Adjustment and discuss the tax consequences if Sarah sold the press for:
(a) $200,000 (b) $149,657.53 (c) $100,000
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