The following are the Balances brought forward by AB spares during the year ended 31 December 2020:

	COST (Pula)	TWDV (Pula)
Furniture and fittings	260,000	182,000
Other Plant and machinery	550,620	385,434
Computer equipment	800,000	600,000
Motor vehicles truck	1,800,000	445,000
Motor vehicle Tractor	190,000	146,250

Additional Informations:

1. Computers acquired in January 2017 for P320 000 with a Tax Written down value of P 80000 were disposed of during the year for P90, 000
2. Trucks which cost P732, 000 were acquired and brought into use during the year.
3. Industrial building cost P1, 850,000 was acquired during the year.
4. Other plant and Machinery cost P180, 000 with a tax written value of P126, 000 was sold during the year for P80, 000.

Required:

1. Calculate the Capital allowances for the 2020 tax year clearly showing the tax written down values (TWDV) of the assets. (10 Marks)
2. Calculate the net balancing charges/allowances for the 2020 tax year. (10 Marks)

SUBJECT PRINCIPLES OF TAXATION