Anita starts trading on 1 April 2023, preparing accounts to 31 March. Her acquisitions and disposals of plant and machinery in the first three years of trading are as follows:

Her AIA of £1,000,000 for the year to 31 March 2024 is set against general plant. Compute capital allowances for the first three chargeable periods assuming that:

(a) she does not make any short-life elections

(b) she makes a short-life election with regard to the office computer.

Note that the figures in this example have been made very high so as to demonstrate the usefulness of a short-life election when the entitlement to AIA has been fully utilised.