Question: Green House Ltd, a housing developer, commenced its operation on 25 July 2016 and closes its accounts to 30 April annually. Below are the non-current

Green House Ltd, a housing developer, commenced its operation on 25 July 2016 and closes its accounts to 30 April annually. Below are the non-current assets owned by the company as at 1 May 2019:

Assets

Cost

Date of Purchase

Office equipment

$84,000

14 March 2016

Heavy machinery

$360,000

6 November 2016

Passenger car

$105,000

19 March 2018

The following transactions occurred during the year ended 2020:

1. The company purchased new machinery on 17 August 2019 for $180,000,

including $25,000 for installation. Before the installation, $28,000 was incurred

for levelling land to prepare site for the installation.

2. The heavy machinery was traded in on 10 December 2019 for a new, advanced

machine. The new heavy machinery costs $500,000. The accepted trade in value

for the old machine was $148,000.

3. The passenger car was provided for the Managing Director of the company. On 12

January 2020, the car was sold for $62,000.

A new passenger car was purchased on hire purchase basis, based on the following

Terms:

Hire purchase price

$280,000

Cash price

$250,000

Deposit (paid on 12 January 2020)

$10,000

No. of monthly instalment

60

First instalment due on

15 Feb 2020

It was agreed by the IRB that of the car usage (both cars) was for the Managing Directors personal purpose.

4. A television and a projector were purchased on 1 March 2020 for $3,400 and $1,200, respectively. They are for office use.

Required: Determine the capital allowance, balancing allowance and/or balancing charge (if any) for Green House Ltd. for all the relevant years of assessment up to the year of assessment 2020

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