- 16 Marks
Question
NASA Ltd commenced business on 1 October 2017, preparing accounts to 31 December each year. Accordingly, the company has the following extracts from its financial records on non-current assets:
Year 2017
- Purchased Office furniture and fittings costing GH¢40,000.
- Purchased office Air conditioners at the cost of GH¢20,000.
- The company bought a land costing GH¢55,000.
- Bought office building at the cost of GH¢700,000.
- Purchased a computer at the cost of GH¢1,500.
- Purchased office Photocopier at the cost of GH¢2,500.
Year 2018
- Purchased a Television Set for the office at the cost of GH¢3,500.
- Bought a 4×4 Vehicle (7-passenger-seater) for an amount of GH¢200,000.
- Purchased a File Cabinet for GH¢2,000.
Year 2019
- Exchanged the vehicle bought in 2018 for four plots of land valued at GH¢200,000.
- Paid for a Trade Mark costing GH¢15,000, which was licensed for ten years.
- Purchased a business that resulted in Goodwill of GH¢100,000. The company decided to amortize the goodwill over 20 years.
Year 2020
- Bought a home-used motor vehicle at the cost of GH¢70,000.
- Purchased office computers for GH¢5,000.
- Purchased Trucks and Trailers for GH¢50,000.
- Sold some of the office furniture for GH¢3,000.
Required:
Calculate the amount of capital allowance claimable for 2017, 2018, 2019, and 2020 years of assessment. (16 marks)
Answer
NASA Ltd
Computation of Capital Allowance (Amounts in GH¢)
- Tags: Capital Allowance, Corporate Tax, Depreciation, Non-current Assets, Tax computation
- Level: Level 2
- Topic: Corporate Tax Liabilities
- Series: NOV 2021
- Uploader: Theophilus