LOW VALUE POOL WORKSHEET 2007 Basic Chapter 8 Q7

1 LOW VALUE ASSET (acquired before current financial year, and OAV < $1000)

2 OAV

3 % taxable use

4 Reduced OAV 2 x 3

5 LOW COST ASSET (acquired in the current financial year, and cost < $1000)

6 Cost of LCA

7

8 % taxable use

9 Reduced cost 6 x 8

Balancing adjustment

10 ASSET

11 Termnvalue

12 % taxable use

13 Reduced termn. value 11 x 12

Printer

50

100

50

Electronic organiser

495

80

396

ADDITION or IMPROVEMENT (second element)

Cost

% taxable use

7 x 8

Subtotal

A

Subtotal

E 396

Total

H 50

PLUS closing pool balance from previous year

L 739

E x 18.75%

F 74

A + L

C 739

Deductible decline in value D + F

G 351

C x 37.5%

D 277

Closing pool balance (C + E – G – H)

P 734

If the amount at P calculates as negative, include the figure as income at item 22, and make the closing pool balance at P zero.