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4. A manufacturer of non-alcoholic beverages, Fizzy Ltd, paid US$8,000 in 2018 for the rights, for six years, to the formula to produce, bottle and

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4. A manufacturer of non-alcoholic beverages, Fizzy Ltd, paid US$8,000 in 2018 for the rights, for six years, to the formula to produce, bottle and distribute Bubbly popular drink developed and produced in Mexico. What are the capital allowances on the intangible asset the intellectual property rights of Bubbly - over the six year period? [4 marks] 5. In the above example, if the Mexican company had sold the rights for US$20,000 to Fizzy Ltd and the period over which Fizzy was given the exclusive rights was 20 years. What would Fizzy's capital allowances be? [4 marks]

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