Question
On 1 January 2018, BATCO Manufacturer Limited commenced business at Thika Municipality with the following assets: Sh. Goodwill 5000,000 Land 20,000,000 Buildings (industrial) 21,000,000 Plant
On 1 January 2018, BATCO Manufacturer Limited commenced business at Thika Municipality with the following assets:
Sh.
Goodwill 5000,000
Land 20,000,000
Buildings (industrial) 21,000,000
Plant fixed to the buildings 7,200,000
Heavy duty forklifts 4 ,950,000
Three transit goods prime movers 5, 910,000
Conveyor belt 2500000
Mitsubishi, Pajero vehicle for use by the Managing Director 3,960,000
Peugeot 504 picks up 1,750,000
Security wall 1,200,000
Workers quarters 18,000,000
Boilers 6,000,000
Furniture and fittings 3,600,000
Milling machines 37,500,000
Computer soft-wares 200,000
Additional information:
- The following assets were acquired in the year ended 31 December 2020.
Sh.
VW Passat car for the finance manager 2,200,000
Toyota Hilux Pick up 2,300,000
One tractor 3,200,000
Executive desks for department heads 900,000
2. In the year ended 31 December 2021, the following assets were sold:
Sales proceeds (sh.)
One fork lifts 1,200,000
One transit goods 1,500,000
Furniture 600,000
3. In the year ended 31 December 2022, the following assets were acquired or constructed:
Land 6,000,000
Building extensions 12,000,000
Additional conveyor fixed to the building 1,000,000
Staff bus 5,500,000
Drilled borehole 1,900,000
Computers 3,600,000
Required:
Capital allowances for the year ended 31 December 2020, 2021, and 2022.
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