Notes: Related to the company: 1. Motor car purchased were Honda Accord for $3,000,000 and a BMW for $6,000,000.

2. During your review of the Repair & Maintenance account the following expenditure were noted: - An air-conditioner was purchased and installed in 2020 – total cost inclusive of installation was $170,000. - In 2020, a new metal gate was built for the pedestrian entrance costing $300,000. - Purchase of a new telephone for $95,000.

3. During your review of the professional fees account for 2019 the following expenditures were noted: - Lawyers fee for registering a trademark was $15,000. Designing the trademark and cost of registering the trademark was $45,000.

4. Computer costing $50,000 was deemed defective and sold to a third party for $40,000.

Information relating to the Director: 

1. Mr. Richard Allen, the director of the hotel, has also requested that your firm assist with the preparation of his 2020 income tax computation. He provided you with the following information: 

a) Gross salary $7,000,000 per year

b) He was provided with a company car on 1 January 2019. Cost $3,000,000.

c) As part of his compensation, he receives a meal allowance of $5,000 per week.

d) The company also pays his son school fees for $80,000 per term. (assume 3 terms)

e) Rest Well did not deduct any NIS, NHT, Education Tax or PAYE at source.

f) Income from the rental of his personal investment property was $500,000. Expenses was $450,000. Capital allowance for this property was $80,000.

Required

i. Prepare the capital allowance computation for Allen’s Rest Well Resort.

Information about Jamaica

  

Your review of the company's balance sheet indicates the following: 2019 ($) 100,000,000 8,000,000 1,000,000 200,000 Building (hotel) Furnitures Computers (laptops and CPUs) Computers (printers and monitors) Stoves and Kitchen equipment Motor Cars Bus and Vans Software 550,000 5,000,000 8,00,0000 11,000,000 2020 ($) 112,000,000 11,000,000 950,000 250,000 800,000 14,000,000 17,000,000 20,000,000