The following are the Balances brought forward by AB spares during the year ended 31 December 2020:
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Question:
The following are the Balances brought forward by AB spares during the year ended 31 December 2020:
COST (Pula) | TWDV (Pula) | |
Furniture and fittings | 260,000 | 182,000 |
Other Plant and machinery | 550,620 | 385,434 |
Computer equipment | 800,000 | 600,000 |
Motor vehicles – truck | 1,800,000 | 445,000 |
Motor vehicle – Tractor | 190,000 | 146,250 |
Additional Information’s:
- Computers acquired in January 2017 for P320 000 with a Tax Written down value of P 80000 were disposed of during the year for P90, 000.
- Trucks which cost P732, 000 were acquired and brought into use during the year.
- Industrial building cost P1, 850,000 was acquired during the year.
- Other plant and Machinery cost P180, 000 with a tax written value of P126, 000 was sold during the year for P80, 000.
Required:
- Calculate the Capital allowances for the 2020 tax year clearly showing the tax written down values (TWDV) of the assets.
- Calculate the net balancing charges/allowances for the 2020 tax year.
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