Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.’s operations for the year ending 31 December 2020.

	Sh ‘000’	Sh ‘000’
Turnover		19,480
Cost of goods sold		5,620
Gross profit		13,860
Foreign exchange gain		148
Insurance recovery for stolen motor vehicle		968
Proceeds from sale of factory extension		469
		40,545
Less Expenses
Directors emoluments and staff costs	16,890
Pension contribution for staff	4,200
Staff recruitment cost	1,148
Purchase of furniture	420
Penalties on overdue VAT	164
Impairment loss of factory extension	150
Mortgage interest	364
Goodwill written off	162
Loan interest	1,286
Depreciation	908
General office expenses	1,348
		27,040
		13,505

 

 Additional information

1. Details of property, plants and equipment schedule reflected the following details for the assets that existed before the year ending 31^st December 2020:

Assets	Written Down Value 1 Jan 2020	Additions at Cost (2020)	Depreciation (2020)	Disposal Proceeds (2020)
	sh.	sh.	sh.	sh.
Computers	525,000	345,400	131,520	250,000
Water pump	-	280,000	56,000	-
Furniture	360,000	140,000	82,000	-
Conveyor belts	-	960,000	-	-
Delivery vans	2,500,000	142,000	180,000	620,000
Cash registers	620,000	-	58,000	-
Printers	120,000	60,000	42,000	-
Tractors	2,500,000	1,800,000	360,000	-
Motorcycles	380,000	-	68,000	-
Packaging machine	-	860,000	-	-
Non-processing machinery	960,000	-	62,000	-

2. A perimeter wall was constructed at cost of sh.960,000 during the year ending 31^st December 2020 used from 1^st March 2020
3. A go down and drainage system were constructed at cost sh.2,860,000 and sh.1,780,000 respectively put into use on 1^st April 2020.
4. The company constructed a borehole at cost of sh.1,500,000 during the year which was put in use on 1^st July 2020

Required

1. Capital allowance due to Maendeleo ltd for the year ending 31^st December 2020
2. Determine the adjustable taxable income for the year 2020