Question

A taxpayer derives residential income from a property, and purchases the following depreciating assets:

New dishwasher - purchases and installs a new dishwasher on 1 July 2019, at a cost of $1200, with an effective life of 5 years.

2nd hand air conditioner- purchases and installs a second hand air conditioner on 1 July 2019, at a cost of $1000 and with an effective life of 5 years.

Based on the above, what is the maximum decline in value deduction available for the taxpayer in 2020?

Select one:

a. $880

b. $240

c. $2,200

d. $0

e. $480

Answer 1

Paticulars	Amount	Amount
value of Asset	1,200	1,000
Effectieve Life	5	5
Maximum Deduction	2	2
Perod of depriciation	1 year	1 year
Depriciation for Year 1	480	400
WDV athe the End of period 1	720	600
Depriciation for Year 2	288	240
WDV athe the End of period 2	432	360

Option A 880