Turbo Mining Company Ltd started prospecting for minerals in Turkana in year 2008. Expenditure relating to research, testing and winning access to minerals amounted...

      

Turbo Mining Company Ltd started prospecting for minerals in Turkana in year 2008. Expenditure relating to research, testing and winning access to minerals amounted to Sh.48 million.
The company paid Sh. 124 million to the government to acquire the rights over the minerals and shs.180 million for purchase of land.
The following assets were constructed or purchased during the year 2009:
1. Labour quarters were constructed at a cost of Sh. 15 million.
2. Senior manager's house was constructed on the site at a cost of Sh.6 million.
3. The director's house was acquired at a nearby trading centre at a cost of Sh.9 million.
4. Specialised processing machineries for mining were acquired at a cost of Sh.860 million.
5. Computers were purchased at a cost of Sh.0.72 million.
6. A forklift was acquired at a cost of Sh.4.5 million.
7. A saloon car for the general manager was purchased at a cost of Sh.3 million.
8. Office furniture was acquired at a cost of Sh. 1.5 million.
9. An aircraft was acquired for Sh. 144 million.
10. A store was constructed at a cost of Sh.21 million.

Determine The capital allowances due to the company for the years ended 31 December 2009, 2010 and 2011.

  

Answers


Wilfred
turbo11422019322.png
turbo21422019322.png
Wilfykil answered the question on February 14, 2019 at 11:23


Next: Describe the conservation of forage crops through the following methods: (i)Hay making. (ii)Silage making.
Previous: Heshima Ltd. commenced operations on 1 January 2011 after incurring the following expenditure Compute for Heshima Ltd. for the year ended 31 ended 2011 i) Capital allowances ii)...

View More CPA Taxation Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions