Please calculate capital allowance using declining balance method with the following information: Details of the Fixed Assets: Details Cost NBV Tax Written Down As at 31 Dec 2021 As at 31 Dec 2021 Value as at 1 Jan 2021 Motor Vehicles 10,00,000 7,200,000 7,000,000 Equipment 15,000,00 12,00,000 6,713,335 Office buildings 45,000,000 36,000,000 36,450,000 Included in the cost of motor vehicle is a lorry purchased on 1 April 2021 for $2,000,000 Rates are reflected below please show the workings Fixed assets are to be classified into one of four classes: Asset class Depreciation rate (%) Class A: Buildings and improvements 10 Class B: Motor vehicles, furniture and fittings, plant and machinery 30 Class C: Heavy equipment, motor lorries, trucks, and computer equipment 33.3 Class D: Extra heavy equipment, airplanes 40 The allowance is calculated at the rate applying to aggregate expenditure incurred on assets within the class on a declining-balance basis.
Please calculate capital allowance using declining balance method with the following information:
Details of the Fixed Assets:
Details Cost NBV Tax Written Down
As at 31 Dec 2021 As at 31 Dec 2021 Value as at 1 Jan 2021
Motor Vehicles 10,00,000 7,200,000 7,000,000
Equipment 15,000,00 12,00,000 6,713,335
Office buildings 45,000,000 36,000,000 36,450,000
- Included in the cost of motor vehicle is a lorry purchased on 1 April 2021 for $2,000,000
Rates are reflected below please show the workings
Fixed assets are to be classified into one of four classes:
|
Asset class |
|
|
Class A: Buildings and improvements |
10 |
|
Class B: Motor vehicles, furniture and fittings, plant and machinery |
30 |
|
Class C: Heavy equipment, motor lorries, trucks, and computer equipment |
33.3 |
|
Class D: Extra heavy equipment, airplanes |
40 |
The allowance is calculated at the rate applying to aggregate expenditure incurred on assets within the class on a declining-balance basis.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
