Part $1$

A company resident in Trinidad and Tobago purchased the following assets in $2022$:

Asset Cost $ USD

Honda Motor car purchased in May $202238,000$

Heavy Equipment $50,000$

Computer $($CPU$)4,000$

Factory Buildings $72,000$

i$.$ What would be the difference in capital allowances for $2023$ if this company was

resident in Jamaica instead of Trinidad and Tobago. $(16$ marks$)$

ii$.$ State two reasons for the difference. $(2$ marks$)$

iii. Explain two circumstances in which obtaining capital allowances on the reducing balance

basis may be more beneficial than on the straight$-$line basis. $(2$ ma