Question
Question 2.5 Jurong Chemical Co (Pte) Ltd manufacturer and supplier of metalforms, bought a new plant for one of its division on the following hire
Question 2.5 Jurong Chemical Co (Pte) Ltd manufacturer and supplier of metalforms, bought a new plant for one of its division on the following hire purchase terms: Down payment on 1/3/20 $200,000 Twenty instalments of $110,000 each, due on first day of each month $2,200,000 ---------------- $2,400,000 ========
The cash purchase price for the plant was $2 million. The first instalment was due on 1 April 2020. The company financial year ends on 30 November. Required: Determine the amount of capital allowances available under Section 19 and S19A for the relevant years of assessment. [20 marks]
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