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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:

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.

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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)

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