Sunshine Confectionary (a) It began trading on 1 October 2015 and had the following assets in...

 

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Sunshine Confectionary (a) It began trading on 1 October 2015 and had the following assets in use at 30th September 2020. Date of Purchase March 2018 Car -SCV 2900K $420,000 April 2018 Lorry YH 5567D $123,000 February 2018 Office Furniture $55,400 July 2020 Facsimile $6,700 September 2020 Blinds and carpets $96,000 Required: Calculate the maximum capital allowances available to Sunshine Confectionary for Y/A 2021. [6 marks] (b) Princeton Pte Ltd firm which is a qualifying SME, (Small medium enterprise) bought a new machine on hire purchase terms for the manufacturing department. The details are as follows: Down payment 20 monthly instalments of $165,500 due on 1st day of each month 1/3/18 $290,000 3,310,000 Hire purchase price 3,600,000 The cash price of the machine was $2.7 million and the first instalment was due on 1 April 2018. The financial year ends on 31 December. Required: Calculate the amount of capital allowances that the company can claim using S19A for all relevant years of assessment. Assume it does not qualify for PIC scheme. [11 marks] Princeton sold its car - SUV 4490 X which it acquired in 2018 to an external party on 20th December 2020. It was sold for $222,900. Required: (c) Compute the balancing adjustment for the disposal of the car and advise the tax implications for Princeton Pte Ltd. [3 marks] Sunshine Confectionary (a) It began trading on 1 October 2015 and had the following assets in use at 30th September 2020. Date of Purchase March 2018 Car -SCV 2900K $420,000 April 2018 Lorry YH 5567D $123,000 February 2018 Office Furniture $55,400 July 2020 Facsimile $6,700 September 2020 Blinds and carpets $96,000 Required: Calculate the maximum capital allowances available to Sunshine Confectionary for Y/A 2021. [6 marks] (b) Princeton Pte Ltd firm which is a qualifying SME, (Small medium enterprise) bought a new machine on hire purchase terms for the manufacturing department. The details are as follows: Down payment 20 monthly instalments of $165,500 due on 1st day of each month 1/3/18 $290,000 3,310,000 Hire purchase price 3,600,000 The cash price of the machine was $2.7 million and the first instalment was due on 1 April 2018. The financial year ends on 31 December. Required: Calculate the amount of capital allowances that the company can claim using S19A for all relevant years of assessment. Assume it does not qualify for PIC scheme. [11 marks] Princeton sold its car - SUV 4490 X which it acquired in 2018 to an external party on 20th December 2020. It was sold for $222,900. Required: (c) Compute the balancing adjustment for the disposal of the car and advise the tax implications for Princeton Pte Ltd. [3 marks]

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a Capital Allowance for YA 2021 apital Allowance Cost 13rd of costs Car 420000 NO al... View the full answer