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The There will be a balancing adjustment of $1,625 to be included in the assessable income.

The There will be a balancing adjustment of $1,625 to be included in the assessable income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dd.23.

Brett owns a business and during the current income year, Brett has an opening pool balance of $3,000. He sold most of the assets in the pool during the year for $3,500. Please state which of the following answer is correct? O All of the $3,500 will be assessable and the pool will be continued to be depreciated at the rate of 37.5%. O The balance of the pool will be reduced to nil and $1,625 will be included in the assessable income as there is no balancing adjustments for a pool. TH There will be a balancing adjustment of $1,625 to be included in the assessable income. O There will be a balancing adjustment of $1,625 to be available as a deduction.
Transcribed Image Text:Brett owns a business and during the current income year, Brett has an opening pool balance of $3,000. He sold most of the assets in the pool during the year for $3,500. Please state which of the following answer is correct? O All of the $3,500 will be assessable and the pool will be continued to be depreciated at the rate of 37.5%. O The balance of the pool will be reduced to nil and $1,625 will be included in the assessable income as there is no balancing adjustments for a pool. TH There will be a balancing adjustment of $1,625 to be included in the assessable income. O There will be a balancing adjustment of $1,625 to be available as a deduction.
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