For revision purpose - Taxation Theory & Practice

Peter manufactures office furniture and makes up his accounts to the 31st of December each year. He rents the work-shop premises.

The following assets were acquired on the dates shown:

Plant 1 June 2012 Cost $50,000

Pickup truck 1 January 2013 Cost $200,000

Plant 30 April 2013 Cost $300,000

Motor Car (used privately) 30 April 2013 Cost $150,000

The plant that was bought on 1^st June 2012 was sold on 31^st December 2014 for $25,000. No further acquisitions or disposals took place before December 2015. For tax purposes vehicles have the following capital allowances: an initial allowance of 12.5% and an annual allowance of 12.5% (SL). Plant is given an initial allowance of 20% and an annual allowance of 11.25% (SL).

REQUIRED

Compute the capital allowances for years of assessment 2013, 2014 and 2015.