DO 11. Which of the following does NOT constitute qualifying expenditure of plant or machinery for the purpose of claiming depreciation allowance? A) Expenditure on alterations to an existing building incidental to the installation of the plant or machinery B) Financial interest incurred on loan for purchasing the plant or machinery before the plant or machinery is put into use C) The purchase cost of the plant or machinery D) Expenditure which has been allowed as research and development expenditure Which of the following statements is true? 12. A) A hotel building does not qualify as an industrial building B) Annual allowance of plant and machinery is granted on assets that are owned and have not been in used in the production of assessable profits at some time in an earlier year of assessment. C) A showroom qualifies as an industrial building. D) Different industrial buildings can be pooled together to calculate industrial building allowance. 2 The information below is for answering Questions 13 to 15 which relate to the year of assessment 2018/19 The following transactions occurred in the year ended 31 March 2019: Proceeds from the sale of furniture - 20% pool (cost $120,000) Proceeds from the sale of vehicles - 30% pool (cost $400,000) Purchase of vehicles Purchase of office furniture Purchase of room air-conditioners - 20% pool 25.000 450.000 350,000 100,000 90,000 Tax written down values (WDV) of plant and machinery brought forward from the previous year of assessment are as follow The information below is for answering Questions 13 to 15 which relate to the year of assessment 2018/19 The following transactions occurred in the year ended 31 March 2019: Proceeds from the sale of furniture - 20% pool (cost $120,000) Proceeds from the sale of vehicles - 30% pool (cost $400,000) Purchase of vehicles Purchase of office furniture Purchase of room air-conditioners - 20% pool 25,000 450,000 550,000 100.000 90.000 Tax written down values (WDV) of plant and machinery brought forward from the previous year of assessment are as follows: 20% 30% WDV brought forward $700,000 $750,000 13. Total initial allowance that can be claimed is: A) 114,000 B) 220,000 C) 333,000 D) 444,000. 14. Annual allowance that can be claimed for the 20% pool is: A) 76,000. B) 150,200. C) 171,000 D) 321,200 Annual allowance that can be claimed for the 30% pool is: A) 76,000 B) 150,200. C) 171,000 D) 321,200 15