1. Written down value as at 31.11.2018

Motor vehicle

Lorries 250,000.00

Tractors 375,000.00

Saloons 1,250,000.00

Equipment 275,000.00

Computers 300,000.00

Furniture 725,000.00

2. Greenhouses at cost 1,200,000.00

Farmhouse at cost 1,500,000.00

Additional information.

1. A Mercedes Benz was purchased for the director at shs. 2,500,000.00
2. Four cars were traded in for four new ones. The value of the new cars was shs. 750,000 each. The company made a cash payment of shs. 600,000.00 for each of the four cars acquired.
3. An irrigation system was installed at a cost of sh. 900,000.00
4. A new water pump was acquired at a cost of sh. 200,000.00

Required

1. Compute the capital allowances for flower export ltd, as at 31.12.2019. (12 marks)
2. Comment on the motor vehicle benefit for the car used by the director. (2 marks)

(Total: 20 marks)