Profits Tax Computation 2020/21 for Tasting Good Bakery showing profits tax payable including Depreciation Allowance Schedule.

(v ) Rent and rates include $10,000 carpet replacement for the shop. (vi) Miscellaneous expense comprises: Stock loss due to early expiry of raw materials Penalties for speeding on Eastern Corridor during deliveries of products Others (all deductible expenses) Total $ 10,750 5,250 6,000 22,000 (vii) Interest expense of $12,000 $10,000 was paid on a bank loan obtained to finance the business operation. The loan was secured by personal guarantee given by Tim. (viii) During the year, an old delivery van was traded-in for $14,500 to acquire an electric van which had a cost of $90,000. The net book value of the old van was $8,000 (original cost $105,000). There is no other addition to fixed asset during the year. Based on 2019/20 profits tax return, the tax written down value of the plant and machinery 20% pool is $50,000 and 30% pool is $60,000. (v ) Rent and rates include $10,000 carpet replacement for the shop. (vi) Miscellaneous expense comprises: Stock loss due to early expiry of raw materials Penalties for speeding on Eastern Corridor during deliveries of products Others (all deductible expenses) Total $ 10,750 5,250 6,000 22,000 (vii) Interest expense of $12,000 $10,000 was paid on a bank loan obtained to finance the business operation. The loan was secured by personal guarantee given by Tim. (viii) During the year, an old delivery van was traded-in for $14,500 to acquire an electric van which had a cost of $90,000. The net book value of the old van was $8,000 (original cost $105,000). There is no other addition to fixed asset during the year. Based on 2019/20 profits tax return, the tax written down value of the plant and machinery 20% pool is $50,000 and 30% pool is $60,000