Question 4 (deductions) David operates an electrical repair store and he provides you with the following information regarding expenses paid during the current tax year: ? $11 000 paid to install a new air-conditioner. The old system broke-down and would have cost $6 000 to replace. David decided to replace the old air conditioner with a new ducted system. ? $2 000 paid to have new tyres put on his motor vehicle as the old ones were no longer safe. The vehicle is used 70% of the time for business purposes. Based on the above transactions what amount would Andrew be entitled to claim as a deduction for repairs under s 25-10? 1) $11 000 2) $6 000 3) $1 400 4) $12 400 5) $2 000
Amount paid to purchase new air conditioner is not considered repairs but capital expenditure. Amount paid to replace tyres are considered repairs.
Thus, repairs are $2,000
Question 4 (deductions) David operates an electrical repair store and he provides you with the following...
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