Question
Capital Allowances Coventry Incorporated started trading on 1 October 2016. It chose 31 March as its accounting date and its first accounts were for the
Capital Allowances
Coventry Incorporated started trading on 1 October 2016. It chose 31 March as its accounting date and its first accounts were for the period from 1 October 2016 to 31 March 2017. His purchases and sales of plant and machinery during the first two accounting periods were as follows:
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1 October 2016 | Bought machinery | 130,000 |
1 October 2016 | Bought motor van (emissions 212 g/km) | 16,000 |
12 December 2016 | Bought motor car (emission 173 g/km) | 18,400 |
18 January 2017 | Bought office equipment | 4,800 |
4 February 2017 | Bought motor car (emissions 122 g/km) | 9,200 |
12 April 2017 | Sold car bought in February 2017 | 9,600 |
12 April 2017 | Bought motor car (emissions 130 g/km) | 15,500 |
25 November 2017 | Sold machinery (cost 11,500 in October 2016) | 8,300 |
3 February 2018 | Bought machinery | 30,000 |
There was 25% private use by an employee of the motor car purchased in December 2016 and no private use of any of the other assets.
Required:
Prepare a capital allowances computation for the period to 31 March 2017 and for the year to 31 March 2018.
Coventry Incorporated started trading on 1 October 2016. It chose 31 March as its accounting date and its first accounts were for the period from 1 October 2016 to 31 March 2017. His purchases and sales of plant and machinery during the first two accounting periods were as follows: 2 2 1 October 2016 Bought machinery 1 October 2016 130,000 16,000+ Bought motor van (emissions 212 g/km) Bought motor car (emission 173 g/km) 12 December 2016 18,40044 Bought office equipment 4,8004 18 January 2017 4 February 2017 Bought motor car (emissions 122 g/km) 9,2004 Sold car bought in February 2017 9,6004 12 April 2017 12 April 2017 Bought motor car (emissions 130 g/km) Sold machinery (cost 11,500 in October 2016)Step by Step Solution
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