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taxation(1-3)

# taxation(1-3) - -A new truck was purchased at \$100,000 D.A...

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Pooling system IRD - s.39B and s.39D Assets of same rate of annual allowance (A.A.) are pooled Types of allowances: - (1) Initial allowance (I.A.) - 60% on qualifying expenditure - (2) Annual allowance (A.A.) - 10%, 20% or 30% on the reducing value of the pool each year

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D.A. computation Transaction (1): On 1 July 07, - New furniture was acquired at a cost of \$150,000 - The old furniture was disposed and \$9000 was received
D.A. computation Transaction (2): On 30 Sep 07, - A truck was sold at \$45,000

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Unformatted text preview: -A new truck was purchased at \$100,000 D.A. computation Transaction (3): On 1 Jan 08,-Mr. Wong took one of the business cars for private use-Replaced the business car by his own car-Market price of the business car = \$64,000-Cost of the private car = \$120,000(bought on 15 Oct 05) Transaction (3): Private car(30%): Cost at 2005 \$120,000 Less: Notional Allowance(05/06) (36,000) 84,000 Less: Notional Allowance(06/07) X 30% X 30%...
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