Business Management Q Andrew who is 28 years of age operates a small clothing manufacturing business in Sydney under his own brand name 'Smart Designs'. Andrew brings his income to account on a cash basis. On 2 July 2014 Andrew decided to expand his business operations in Melbourne. Andrew also plays professional rugby for the Melbourne Storm Rugby Club during the football season. The following additional information set out in Schedule A relates to Andrew's financial position for the financial year ended 30 June 2015. Issue 1 • On 17 December 2015 Andrew sold an extremely rare 1920 Rolls Royce to the Petrol Head Vintage Car Museum for $87,000. He purchased the car on 9 August 2011 for $17,000 and spent $21,000 to restore it back to its original condition. He also paid $1,500 in advertising costs to sell it. • On 19 June 2015 Andrew sold 1000 NAB shares for $35,000. Andrew purchased the shares on 17 May 2010 at a cost of $10,000 • At the end of the 2013-14 financial year Andrew had a $10,000 prior year capital loss on sale of a rare manuscript Advise Andrew of the CGT consequences of the above transactions. Issue 2 On 1 July 2014 Andrew purchased a new Ford. The purchase price was $75,000. During the financial year he travelled 24,000 km, of which 12,000 were for private use. The rate of depreciation is 22.5 per cent. Calculate the amount of depreciation Andrew can claim for the financial year ended 30 June 2015. Issue 3 For the past five years Andrew and his wife resided in a property that is owned by Andrew's family company. Andrew used 50% of the premises for income producing purposes. The company sold the property on 1 August 2014 for $475,000. The company purchased the property on 1 August 2009 at a cost of $275,000. Advise Andrew of the CGT consequences of the above property transaction.