In January 2018 a taxpayer who owned a sole proprietorship business, bought a private motor vehicle for $7,000,000. The exchange rate at the time was J\$150 to U\$1. The annual allowance rate for private motor vehicles is 12.5% It is assumed that in all of the years the car was used solely for business use. (a) What is the notional purchase price for Capital Allowance purposes. Give reasons for your answer (5 marks) (b) Calculate the annual allowances for year 1-4 and the written down value at the end of year 4 (4 marks) (c) In Year 5, the taxpayer sold the vehicle for $5,500,000. I. Calculate the notional Selling Price -2 marks II. Calculate the total allowances given at the end of year 3. (1 mark) III. Calculate the balancing allowance/balancing charge and give reasons for your answer. 3 marks