Kubi Ltd is a manufacturer of hair products. Following a board resolution Kubi decided to cease business operations in Harare and relocate the business to Rusape.

Kubi disposed of the following property and equipment on $20$ April $2016.$

Date acquired Cost Selling price

US$ US$

Industrial building $2010100000200000$

Furniture fittings $20103000020000$

Factory plan & equipment $20115000030000$

Commercial building $2012120000220000$

Office equipment $20124000030000$

$340000500000$

The sales proceeds of the Harare operations were applied towards the acquisition of new property and equipment in Rusape on $25$ November $2016$ as follows:

Cost $($US$$)$

Industrial building $150000$

Commercial building $180000$

Furniture and fittings $30000$

Factory and equipment $60000$

Office equipment $40000$

$460000$

Kubi has always claimed the maximum capital allowances possible in any year.

Required

$($a$)$ State the relief available to Kubi in connection with the disposal of the Harare properties and state the qualifying criteria. $[10]$

$($b$)$ Assuming that the tax relief in $($a$)$ is claimed, calculate the capital gains payable by Kubi for the year ended $31$ December $2016.[15]$