Jordon Gordon owns a hardware business with two retail outlets in Kingston and Montego Bay. He rents one premise and built the second one at a cost of $5 million in 2013. He bought a truck in 2013 costing $2 million. He uses his Honda motor car (costing $4,500,000 in 2013) 50% for business purposes. In 2014 he sold the Starlet used by his wife for $3,200,000 (Cost $4,250,000 in 2012, 50% business use) and bought her a Toyota Corolla (Cost $5 million on January 1, 2015, 50% business use). On April 1, 2015, he purchased a Nissan motor car for $3,250,000 to be used by a salesman in his business. Private usage by the salesman is estimated to be one-third. Mr. Gordon uses plants and machinery in his business which he purchased in June 2013 for $3 million. Furniture and fittings are also used in his business which he bought for $500,000 on January 1, 2013. Mr. Gordon makes up his accounts to 31st December each year. Assume an exchange rate ofUS$1 = JMD$125.
Required:
A.     Prepare the capital allowance schedules for the following assets, writing appropriate notes up to year of assessment 2015 (Round figures to the nearest dollar)
i.                    Plant and machinery (9 marks)
ii.                  . Truck (8 marks
iii.                Motor Car (26 marks)
iv.                . Furniture and fittings (7 marks)
v.                  Buildings (8 marks)

Answer rating: 100% (QA)

Answer A The Yearwise allowed Capital allowances for each category of assets is as under i Plant and machinery 2013 825000 2014 163125 2015 150891 ii Truck 2013 800000 2014 240000 2015 192000 iii Moto... View the full answer