Question: Larrodev Enterprises provides you with the following information as it relates to its business operation. Compute the appropriate allowances and charges for the years

Larrodev Enterprises provides you with the following information as it relates to

 

Larrodev Enterprises provides you with the following information as it relates to its business operation. Compute the appropriate allowances and charges for the years of assessment 2018 2021 in respect to the following. The company makes up accounts as at 31 December each year. Compute any balancing allowance/charge for assets dispose of in 2021. PURCHASES DURING 2018 $ 1 July Industrial Building (block, steel and cement). 8.500,000 including cost of land $1,500,000 1 July - Plant and Machinery (used in production) 1 September - Office equipment 1 April - Non-industrial building (wooden structure) 1 July-Delivery Truck- Business use 60% and private use 40% 1 October- Private motor vehicle. Exchange rate US$1:JS120 DISPOSAL DURING 2021 1 June - Office Equipment 1 August Non-Industrial. 1 October - Trade Vehicle Year of Assessment Cost Rate (%) Year of Assessment Cost Rate (%) 3,000,000 1,500,000 5,000,0000 Initial Allowance Rate (%) 4,000,000 4,000,000 Year of Initial Assessment Cost Rate (%) Allowance Rate (%) 2,000,000 1,800,000 2,800,000 Annual Allowance Total Allowance Initial Annual Allowance Rate (%) Allowance Total Allowance Year of Initial Annual Written Down Assessment Cost Rate (%) Allowance Rate (%) Allowance Total Allowance Value Annual Allowance Year of Total Assessment Cost Rate (%) Annual Allowance Allowance Business Private Total Allowance Written Down Value Written Down Value Written Down Value Written Down Value

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