Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your
Question:
Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your first assignment your supervisor asked you to assist him with the income tax computation of a small business in The Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your first assignment your supervisor asked you to assist him with the income tax computation of a small business in the tourism sector. The company provided the following information:
Allen's Rest Well Resort is a resort cottage located incorporated in Jamaica. The company is a registered tourism operator under the Tourist Board Act.
The hotel commenced operations on the 1 January 2019:
Fixed Assets
Cost (J$) TWDV (J$)
Building (hotel) 100,000,000 72,000,000
Furnitures 8,000,000 6,000,000
Computers (laptops and CPUs) 1,000,000 500,000
Computers (printers and monitors) 500,000 375,000
Motor Cars # 1 purchased in July 2019 3,000,000 2,437,500
# 2 purchased January 2019 2,500,000 1,875,000
Bus and Vans (purchased 1 January 2019) 8,00,0000 480,000
The following acquisitions and disposal occurred in 2021:
1. A Corolla motor car purchased for $3,000,000. Acquired 1 April 2021.
2. A BMW for $10,000,000. Acquired 1 November 2021.
3. A new building constructed for $30,000,000
4. Laptop for $100,000
5. Purchase of a telephones for $950,000.
6. The company Motor car #1 was sold for $2,700,000
Assume the relevant exchange Rate is US$152: J$1
Required:
Calculate the capital allowance computation for Allen's Rest Well Resort for 2021.
Expert Answer:
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
