Kenny owns a bakery business and during the tax year, 2018/2019 disposed of several capital assets. He
Question:
Kenny owns a bakery business and during the tax year, 2018/2019 disposed of several capital assets. He provided you with the following information:
Profit on sale of office equipment £ 1,250
Balancing charge on the sale office equipment £850
Loss on disposal of delivery van £500
Balancing allowance on disposal of delivery van £320
Annual allowance on motor vehicle £ 1,860
Kenny also stated that the motor vehicle has been partly used for private purposes. The motor vehicle has been used 60% for business use.
Draft a report to Kenny explaining the tax treatment to be applicable for the above-mentioned facts in computing the tax liability of Kenny for the tax year 2018/2019.
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield