Notes: Related to the company: 1. Motor car purchased were Honda Accord for $3,000,000 and a BMW
Question:
Notes: Related to the company: 1. Motor car purchased were Honda Accord for $3,000,000 and a BMW for $6,000,000.
2. During your review of the Repair & Maintenance account the following expenditure were noted: - An air-conditioner was purchased and installed in 2020 – total cost inclusive of installation was $170,000. - In 2020, a new metal gate was built for the pedestrian entrance costing $300,000. - Purchase of a new telephone for $95,000.
3. During your review of the professional fees account for 2019 the following expenditures were noted: - Lawyers fee for registering a trademark was $15,000. Designing the trademark and cost of registering the trademark was $45,000.
4. Computer costing $50,000 was deemed defective and sold to a third party for $40,000.
Information relating to the Director:
1. Mr. Richard Allen, the director of the hotel, has also requested that your firm assist with the preparation of his 2020 income tax computation. He provided you with the following information:
a) Gross salary $7,000,000 per year
b) He was provided with a company car on 1 January 2019. Cost $3,000,000.
c) As part of his compensation, he receives a meal allowance of $5,000 per week.
d) The company also pays his son school fees for $80,000 per term. (assume 3 terms)
e) Rest Well did not deduct any NIS, NHT, Education Tax or PAYE at source.
f) Income from the rental of his personal investment property was $500,000. Expenses was $450,000. Capital allowance for this property was $80,000.
Required
i. Prepare the capital allowance computation for Allen’s Rest Well Resort.
Information about Jamaica
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura