Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of step 2 in the table in subsection 711‑20(1), the step 2 amount is worked out using the following formula:
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where:
"acquired deductions" means all deductions covered by subsection (2) for expenditure that constituted an acquired deduction of the * head company under subsection 705-115(1) when an entity (whether or not the leaving entity) became a * subsidiary member of the old group.
"owned deductions" means the sum of all deductions covered by subsection (2) that are not acquired deductions.
(2) This subsection covers any deduction to which the leaving entity becomes entitled under section 701‑40 as a result of the leaving entity ceasing to be a * subsidiary member of the old group, other than a deduction for expenditure:
(a) that is, forms part of or reduces, the cost of an asset that becomes an asset of the leaving entity because subsection 701‑1(1) (the single entity rule) ceases to apply; or
(b) to which section 110‑40 (about expenditure on assets acquired before 7.30 pm on 13 May 1997) applies.