Capital Allowance Question 1 The following assets were acquired on the dates shown: Plant 1 June 2010 Cost $50,000 Pickup truck 1 January 2011 Cost $200,000 Plant 30 April 2011 Cost $300,000 Motor Car (used privately) 30 April 2011 Cost $850,000 The plant that was bought on 1st June 2010 was sold on 31st July 2012 for $40,000. For tax purposes vehicles have the following capital allowances: an initial allowance of 12.5% and an annual allowance of 12.5%(SL). Plant is given an initial allowance of 20% and an annual allowance of 11.25% (SL). Compute the capital allowances for years of assessment 2011, 2012 and 2013