Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kencoff Company Ltd. is a coffee manufacturing company that was incorporated on 1 January 2020. The company commenced its operations on 2 May 2020 after
- Kencoff Company Ltd. is a coffee manufacturing company that was incorporated on 1 January 2020. The company commenced its operations on 2 May 2020 after incurring the following expenditure. Sh. Factory land and building 82.000.000 Conveyor belts 6,200,000 Furniture and fittings 350,000 Farin labour quarters 4.800.000 Coffee milling machinery 4.200.000 Irrigation system 1.480.000 Borehole 2.360,000 Construction of gabions 1.120.000 Lorry (3.5 tonnes) 3,400,000 Fencing of the farm 780,000 Farmhouse 2,620,000 Tractor 3,600,000 Godown 1,860,000 Factory perimeter wall 948.000 Delivery van 2,600,000 Trailer for tractor 520,000 Computers 720,000 2 Saloon cars (each costing Sh.3,300,000) 6,600,000 Sports pavilion 1,840,000 Additional information: Included in the factory land and building is the cost of land valued at Sh.45,000,000. 2 One of the saloon cars was disposed of during the year for Sh.2.200.000. 3. The following assets were purchased on 1 August 2020: Sh. Office curtains 320,000 Fax inachine 180.000 560.000 Packaging machine 1.720,000 Required: Investment allowances due to Kencoff Company Ltd. for the year ended 31 December 2020. Water pump
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started