GoMo Ltd is a UK registered company which commenced trading in the UK on 1 March 2020 as a manufacturer of mopeds (small motorbikes). GoMo Ltd prepared its first accounts for the period 1 March 2020 to 31 December 2020. The following information is available: PART A 1. Trading profit The tax adjusted trading profit based on the draft accounts for the ten-month period ended December 2020 is 944,291. This figure is before making any adjustments required for 1. Capital allowances, 2. Tax adjustments required for research & development which included payroll expenses of 3,256 and capital expenditure as shown in plant and machinery below (the company is considered small for R&D purposes); 3. Advertising expenditure of 10,280 incurred during February 2020, just before the trade commenced. This expenditure has not been deducted in arriving at the tax adjusted trading profit for the period ended 31 December 2020, 4. Non-trade loan relationships ii. Plant and machinery The financial accounts for the period ended 31 December 2020 show the following tangible fixed asset additions: Cost 2 March 2020 Manufacturing machine 62,500 6 October 2020 Equipment for R&D purposes 1,600 8 November 2020 Petrol motor car 13,200 The motor car has emissions of 125g/km and is to be used by the managing director of the company to travel 10,000 business miles and 4.000 miles of private travel . Building GoMo Ltd purchased a factory on 1 March 2020 for 320,000 (including 100,000 for the land). At the time of purchase the company knew it would need to spend an additional 20,400 to repair a hole in the building's roof to make it usable for manufacturing purposes. These repairs are included as an expense in reaching the adjusted trading profit of E944 291 above, The company also paid for the construction of a new storage building at a cost of 60,000. The building contract was signed on 1 April 2020, with the building brought into use from 1 November 2020 Iv. Interest expense During the first trading period GoMo Ltd received two separate loans: 250,000 secured loan to help finance the purchase of the factory building 22,980 interest was paid during the accounting period to service the loan to 31 December 2020 and is included as an expense in reaching 944.291 tax adjusted trading profit V. Dividends On 16 December 2020, GoMo Ltd received a 14,500 dividend from Flat-Out plc, an unconnected United Kingdom company. This is not included in the tax trading profit of 944,291. No dividends were received in the accounting period from MoFin Ltd, a subsidiary company. SECTION B REQUIREMENT: PART A - Corporation Tax (Questions 1-4 based on information included in paragraphs l_v) B1) Required: Calculate the maximum capital allowances that GoMo Ltd will be able to claim on the capital expenditures made during the ten-month period of account ended 31 December 2020; GoMo Ltd is a UK registered company which commenced trading in the UK on 1 March 2020 as a manufacturer of mopeds (small motorbikes). GoMo Ltd prepared its first accounts for the period 1 March 2020 to 31 December 2020. The following information is available: PART A 1. Trading profit The tax adjusted trading profit based on the draft accounts for the ten-month period ended December 2020 is 944,291. This figure is before making any adjustments required for 1. Capital allowances, 2. Tax adjustments required for research & development which included payroll expenses of 3,256 and capital expenditure as shown in plant and machinery below (the company is considered small for R&D purposes); 3. Advertising expenditure of 10,280 incurred during February 2020, just before the trade commenced. This expenditure has not been deducted in arriving at the tax adjusted trading profit for the period ended 31 December 2020, 4. Non-trade loan relationships ii. Plant and machinery The financial accounts for the period ended 31 December 2020 show the following tangible fixed asset additions: Cost 2 March 2020 Manufacturing machine 62,500 6 October 2020 Equipment for R&D purposes 1,600 8 November 2020 Petrol motor car 13,200 The motor car has emissions of 125g/km and is to be used by the managing director of the company to travel 10,000 business miles and 4.000 miles of private travel . Building GoMo Ltd purchased a factory on 1 March 2020 for 320,000 (including 100,000 for the land). At the time of purchase the company knew it would need to spend an additional 20,400 to repair a hole in the building's roof to make it usable for manufacturing purposes. These repairs are included as an expense in reaching the adjusted trading profit of E944 291 above, The company also paid for the construction of a new storage building at a cost of 60,000. The building contract was signed on 1 April 2020, with the building brought into use from 1 November 2020 Iv. Interest expense During the first trading period GoMo Ltd received two separate loans: 250,000 secured loan to help finance the purchase of the factory building 22,980 interest was paid during the accounting period to service the loan to 31 December 2020 and is included as an expense in reaching 944.291 tax adjusted trading profit V. Dividends On 16 December 2020, GoMo Ltd received a 14,500 dividend from Flat-Out plc, an unconnected United Kingdom company. This is not included in the tax trading profit of 944,291. No dividends were received in the accounting period from MoFin Ltd, a subsidiary company. SECTION B REQUIREMENT: PART A - Corporation Tax (Questions 1-4 based on information included in paragraphs l_v) B1) Required: Calculate the maximum capital allowances that GoMo Ltd will be able to claim on the capital expenditures made during the ten-month period of account ended 31 December 2020