QUESTION Marks$]$

Peolwane $($Pty$)$ Ltd had the following assets at the beginning of the tax year ended $30$ April $2023$:

The company sold the machinery in September $2022$ for P$190,000.$

Required:

a$)$ Calculate the total capital allowances that the company claimable by Peolwane Pty Ltd$.$

$[12$ Marks$]$

b$)$ Determine the balancing charge or balancing allowance on disposal of the machinery.

$[4$ Marks$]$

c$)$ Explain the concept of rollover relief, explaining how capital allowances will be calculated on

the replacement asset.

$[4$ Marks$]$