Question $5\mathrm{.}10$

The Coffee House Limited is a company that manufactures and distributes top quality local coffee products.

During the year ended $31$ December $20$X$6,$ two non$-$current assets were sold, an item of equipment and a vehicle. The following information is relevant:

Equipment sold

Original cost $($also base cost$)$: C$120000$

Carrying amount at date of sale: C$96000$ and tax base at date of sale: C$108000.$

Profit on sale: C$168000($of which C$144000$ is the capital profit$)$

Vehicle sold

Original cost: C$960000$

Total tax allowances claimed to date of sale: C$480000$

Proceeds on sale C$276000$ and profit on sale: C$36000$

$46$

Chapter $5$

GAAP: Graded Questions

Taxation: Various types and current taxation

Total depreciation on equipment and vehicles for the year ended $31$ December $20$X$6$ is C$252000$ and total tax allowances is C$204000.$

The profit the year ended $31$ December $20$X$6$ has been correctly calculated at C$642000.$ Included in the profit is a non$-$deductible donation of C$36000$ and a deductible donation of C$60000.$

All accrual accounting has been correctly processed and include in the calculation of the profit for the year. The following is an extract from the final trial balances for the years ended $31$ December $20$X$5$ an $20$X$6$:

$\backslash$table$[[,20x6,20x5$