Kubi Ltd is a manufacturer of hair products.Following a board resolution Kubi decided to cease business operations in Harare and relocate the business to Rusape.

Kubi disposed of the following property and equipment on 20 April 2016.

Date acquired Cost Selling price

US$ US$

Industrial building 2010 100 000 200 000

Furniture fittings 2010 30 000 20 000

Factory plan & equipment 2011 50 000 30 000

Commercial building 2012 120 000 220 000

Office equipment 2012 40 000 30 000

340 000 500 000

The sales proceeds of the Harare operations were applied towards the acquisition of new property and equipment in Rusape on 25 November 2016 as follows:

Cost (US$)

Industrial building 150 000

Commercial building 180 000

Furniture and fittings 30 000

Factory and equipment 60 000

Office equipment 40 000

460 000

Kubi has always claimed the maximum capital allowances possible in any year.

Required

2. State the relief available to Kubi in connection with the disposal of the Harare properties and state the qualifying criteria. 
4.  Assuming that the tax relief in (a) is claimed, calculate the capital gains payable by Kubi for the year ended 31 December 2016.