B) Mary who has traded for years now is involved in the manufacture and sale of...
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B) Mary who has traded for years now is involved in the manufacture and sale of ladies fashion has a 5 April year end for accounting purposes. The tax written down values of the various pools of expenditure on 6 April 2023 were: Main pool Special rate pool Mercedes car (acquired 1 October 2017) £59,400 £14,200 £26,300 The Mercedes car is used by Mary, and it is estimated that she uses it approximately 50% for business. It has CO2 emissions of 165g/km. The following fixed assets were acquired by Mary (for her trade) during the year: New air conditioning system for factory Installation of 3 electric car charging points (see below) New industrial sewing machines (five machines) Acquired October December January A grant of £1,000 towards the cost of the electric charging points was received from the government. The only fixed asset disposal by Mary business was the sale of five old sewing machines. They cost less than £6,000 each and were sold for £250 each. Cost £28,000 £3,000 £15,000 On 6 January 2024, the business started to use an extension to the factory that had been built over the previous year (contracts signed 10 January 2023) at a cost of £500,000. No integral features were part of this building. Required: calculate the capital allowances that Mary's business is entitled to claim for the year 2023/24. B) Mary who has traded for years now is involved in the manufacture and sale of ladies fashion has a 5 April year end for accounting purposes. The tax written down values of the various pools of expenditure on 6 April 2023 were: Main pool Special rate pool Mercedes car (acquired 1 October 2017) £59,400 £14,200 £26,300 The Mercedes car is used by Mary, and it is estimated that she uses it approximately 50% for business. It has CO2 emissions of 165g/km. The following fixed assets were acquired by Mary (for her trade) during the year: New air conditioning system for factory Installation of 3 electric car charging points (see below) New industrial sewing machines (five machines) Acquired October December January A grant of £1,000 towards the cost of the electric charging points was received from the government. The only fixed asset disposal by Mary business was the sale of five old sewing machines. They cost less than £6,000 each and were sold for £250 each. Cost £28,000 £3,000 £15,000 On 6 January 2024, the business started to use an extension to the factory that had been built over the previous year (contracts signed 10 January 2023) at a cost of £500,000. No integral features were part of this building. Required: calculate the capital allowances that Mary's business is entitled to claim for the year 2023/24.
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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