COURSE: TAXATION

QUESTION ONE Best Accountants Company Ltd commenced business on 1/1/08. The company constructed a factory building costing GH 200,000. The company which was sited in Accra decided to relocate to Dansoman and so sold the factory in Accra on 1/4/11. Compute the capital allowance for the relevant years of assessment. QUESTION TWO Kwame Awuah commenced business on 1/1/2016. He purchased a car costing GH 300,000 on 1/2/2016. He also purchased office furniture costing GH 10,000 on 1/1/2016. Compute the capital allowance for the 2005 year of assessment.

QUESTION THREE Shining Stars Company Ltd has been in business for many years preparing accounts to 31st December every year. The residual values of the companys assets as at the end of 31st December, 2016 were as follows: GH Trucks 200,000 Plant & Machinery 400,000 Furniture & Fixtures 20,000 Compute the capital allowances claimable for the 2016 year of assessment.