Lawrenco Ltd is a huge company situated at Ajumako. The Company deals with the sale of pineapples.

Computers BUIDING SOFTWARE

COST AS AT 01.1.2021 100,000 40,000,000 1,000,000

MOTOR Vehicles plant and machinery

COST AS AT 01.1.2021 50,000 400,000

Compute the capital allowances for each of the asset. Note that the software has a useful life of 10 years.

i. If Profit disclosed as at 31.12.2021 is GHS 1,200,000.00, what is the adjusted profit if the accountant is yet to subtract the values for the capital allowance.

ii. As a consultant , kindly explain what capital allowance means and how can Lawrenco Ltd plan to take legal advantage of capital allowance

iii. How can Lawrenco ltd enjoy from employing fresh graduates in Ghana?

iv. Discuss how lawrenco can enjoy incentives as a free zone enterprise