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Gerry is an employee mechanic. The depreciation schedule from his 2020 tax return is shown...

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Accounting

Gerry is an employee mechanic. The depreciation schedule from his 2020 tax return is shown below. He has not purchased any new depreciating assets during the year or disposed of any existing ones. The taxable use percentage of the assets has remained the same as the 2020 year. Calculate his claim for decline in value for the 2021 year for: Part A - Torque Wrench Part B - Electric Welder Part C - Electric Drill You are required to provide all workings.

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Asset Date of purchase Cost OAV OWDV Taxable Eff % Life Rate Decline in Value Deduction CAV CWDV 2020 2020 2020 use % 2020 2 Feb 18 $865 $635 $635 10 100% $127 $127 $508 $508 12 Apr Torque Wrench Electric Welder Electric Drill $1,150 $630 $760 5 20% DV 40% DV 20% PC 75% $253 $190 $377 18 $570 1 Jul 18 $555 $444 $444 5 100% $111 $111 $333 $333

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