# Worked Example — Bounty #04

**Companion file to:** `01-brief.md`

## The scenario

**Taxpayer:** GHI Landscape Contractors Pty Ltd (SBE, aggregated turnover $3.8M)
**Financial year:** FY2024–25

**Pool opening balance (from prior year):** $8,750

**Additions during FY2024–25:**

| # | Asset | Cost | Taxable purpose % |
|---|---|---:|---:|
| P1 | Ride-on mower (over IAWO threshold) | $28,000 | 100% |
| P2 | Trailer for equipment transport | $12,500 | 100% |

**Disposals during FY2024–25:**

| # | Asset | Termination value |
|---|---|---:|
| D1 | Old ute (previously in pool) | $6,500 |

## The engine's pool roll-forward

**Step 1 — Additions taxable-purpose adjusted:**
- P1: $28,000 × 100% = $28,000
- P2: $12,500 × 100% = $12,500
- Total additions: **$40,500**

**Step 2 — Disposals taxable-purpose adjusted:**
- D1: $6,500 × 100% = **$6,500** (assumes the ute was always 100% business use)

**Step 3 — First-year decline (15% of additions):**
- $40,500 × 15% = **$6,075**

**Step 4 — Subsequent-year decline (30% of opening balance):**
- $8,750 × 30% = **$2,625**

**Step 5 — Pre-write-off balance:**
- Opening: $8,750
- Plus additions: $40,500
- Minus disposals: $6,500
- Minus first-year decline: $6,075
- Minus subsequent decline: $2,625
- **Balance: $34,050**

**Step 6 — Low-pool-value check:**
- Balance $34,050 > $1,000, so no write-off.

**Step 7 — Final:**
- Deduction for FY2024–25: **$8,700** ($6,075 + $2,625)
- Closing pool balance: **$34,050**