Poland Mining Company Ltd. started prospecting for titanium in Mombasa in year 2011. Expenditure relating to research, testing and winning access to titanium amounted to...

Poland Mining Company Ltd. started prospecting for titanium in Mombasa in year 2011. Expenditure relating to research, testing and winning access to titanium amounted to Sh.240 million. The company paid Sh.720 million to the government to acquire rights over the titanium and Sh.210 million for the purchase of land.
The following assets were constructed or purchased during the year 2012:
1. Two graders were purchased at a total cost of Sh.16, 000,000.
2. A forklift was acquired at a cost of Sh.6, 000,000.
3. A store was constructed at a cost of Sh.36, 000,000
4. Office furniture was acquired at a cost of Sh.2, 400,000.
5. Labor quarters were constructed at a cost of Sh.42, 000,000.
6. Ten Lorries (5 tonnes each) were acquired at a total cost of Sh.30, 000,000.
7. Specialized processing machines for mining were acquired at a cost of Sh.960, 000,000.
8. A staff clinic was constructed at a cost of Sh.12, 000,000 .
9. Computers were purchased at a cost of Sh.480, 000.
10. A ship (600 tonnes) was acquired at a cost of Sh.450, 000,000.
11. Three saloon cars for official use were acquired at a total cost of Sh.9, 000,000.

Determine Capital allowances due to Poland Mining Company Ltd. for the two years ended 31 December 2012 and 31 December 2013

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Wilfykil answered the question on February 14, 2019 at 09:45

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