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- Investment deduction for ordinary manufacture
- Investment deduction for manufacture under Bond = (100% I. D on ordinary manufacture)
- IBD on stores and warehouses, staff quarters, bore holes, substantial renovations etc.
- Wear and tear allowance on other machines.
- Diminution in value of loose tools and implements.
- Income of a deceased person
Wilfykil answered the question on February 26, 2019 at 05:55
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Kamere Ltd. commenced manufacturing operations on 1 January 2003. The management of the company has prepared the following financial statement for the year ended 31 December 2005.
Balance sheet as at 31 December 2005
Additional information:
1. Non-current assets are stated net of depreciation including for year 2005. It is the policy of the company to charge depreciation at 20 % per annum on a straight line method.
2. The company has not claimed capital allowance since it commenced operations.
3. The company's reported taxable profits for the year ended 31 December 2003 and 2004 were sh.8,000,000 andsh.6,400,000 respectively
4. Factory building includes an extension to the factory constructed at a cost of sh. 1,600,000 which was put into use on I January
5. Machinery include generator and conveyor belts bought for sh. 1,400,000 and sh. 800,000 respectively.
6. Motor vehicles include a forklift purchased in 2003 at sh. 1,160,000.
7. A saloon car purchased in year 2004 at sh. 1,200,000 was disposed of during the year 2005 for sh. 600,000 no adjustment have been made to record this disposal.
8. The loan was received on 1 January 2005 and is subject to interest at the rate of 8% per annum
Required:
i) Capital allowances due to Kamere Ltd. for each of the three years ended 31 December 2003 , 2004, and 2005
ii) Adjusted taxable profit or loss for the company in each of the three years above.
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The following is a summary of the company’s income statement for the year ended 31 December 2006.
Required:
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The following information relates to ABC Ltd. for the year ended 31 December 2006.
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Required:
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Ann Mwajuma runs a small business in Kisii town. The revenue authority has asked her to submit a self assessment return for the year ended 31 December 2008
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