The following information is provided in respect of a manufacturing business owned by Mr Chong. The business closes its accounts on 30 June ofeach year. 1. Tax written-down value of plant and machinery brought forward from the previous year of 30% pool 20% pool 50,000 60,000 2. Movements of plant and machinery in the year ended 30 June 2017 are provided as follows: (i) One motor van (AA 3096) costing $250,000 in 2010 was sold for $38,000. A new motor van was purchased for $300,000 and was put into use. (ii) The 30% pool included another motor car which was bought in June 2014 for S200,000. Starting 1 July 2016, the car was used partially by Mr Chong's son for non-business use. The portion of non-business use has been agreed with the IRD to be 50%. The estimated market value of the motor car on 1 July 2016 was S60.000. (iii) Mr Chong inherited his father's business and took over some office furniture (AA 20%) for use in his own business. The tax written-down value of the furniture was (iv) An old equipment which was included in the 20% pool was damaged in a fire. The ion from the insurance company in the amount of S10,000. The equipment was originally bought for $9.000 $8,000 at the date of cessation of his father's business. equipmen a year ago. t was insured and Mr Chong received a compensat Required: (a) Based on the relevant provision s in the Inland Revenue Ordinance and Inland Revenue Rules, compute the depreciation allowance for Mr Chong's business for the year ended 30 June 2017 (12 marks) The following information is provided in respect of a manufacturing business owned by Mr Chong. The business closes its accounts on 30 June ofeach year. 1. Tax written-down value of plant and machinery brought forward from the previous year of 30% pool 20% pool 50,000 60,000 2. Movements of plant and machinery in the year ended 30 June 2017 are provided as follows: (i) One motor van (AA 3096) costing $250,000 in 2010 was sold for $38,000. A new motor van was purchased for $300,000 and was put into use. (ii) The 30% pool included another motor car which was bought in June 2014 for S200,000. Starting 1 July 2016, the car was used partially by Mr Chong's son for non-business use. The portion of non-business use has been agreed with the IRD to be 50%. The estimated market value of the motor car on 1 July 2016 was S60.000. (iii) Mr Chong inherited his father's business and took over some office furniture (AA 20%) for use in his own business. The tax written-down value of the furniture was (iv) An old equipment which was included in the 20% pool was damaged in a fire. The ion from the insurance company in the amount of S10,000. The equipment was originally bought for $9.000 $8,000 at the date of cessation of his father's business. equipmen a year ago. t was insured and Mr Chong received a compensat Required: (a) Based on the relevant provision s in the Inland Revenue Ordinance and Inland Revenue Rules, compute the depreciation allowance for Mr Chong's business for the year ended 30 June 2017 (12 marks)