1. Flamingo Ltd. commenced business on 1 January 2019. The following fixed assets of the company which it acquired prior to the commencement of the business were stated at their written-down values as at 1 January 2019:

Kshs

Milling machine 2,220,000

Forklifts 1,360,000

Tractors 4,400,000

Lorries 1,700,000

Packaging machine 2,250,000

Crushing machine 2,340,000

Conveyor and sorter 3,620,000

Two pick-ups 1,400,000

One lorry 1,700,000

Saloon cars 890,000

Furniture and fittings 772,000

Land 10,500,000

The building in which the processing was to be carried was constructed in 2019 but was first used for manufacture in 2020. The building cost was kshs 7,300,000 in 2020 and the estimated value in January 2020 was kshs. 6,200,000. In 2020 the company bought the following assets:

Kshs

Toyota saloon car 1,350,000

Lorry (3.2 tonnes) 2,600,000

Tractor 1,770,000

Furniture 140,000

Land 3,120,000

Pick-up 2,000,000

Computers 25,000

Computer scanner 200,000

Printers 100,000

Milling machine 2,775,000

The following assets were disposed of in 2020:

Kshs

Forklift 240,000

Saloon car (original cost kshs. 250,000) 460,000

Printer 25,000

Land 1,120,000

Packaging machine 2,250,000

A tractor was damaged through a road accident during the year and the insurance company paid kshs 1,600,000 as compensation.

Required: Capital allowances for Flamingo Ltd for 2020

(20 mks)