11 - BUSI 0018 Hong Kong Taxation Tutorial Questions Unit...

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TQ_U11_DA_Bldgs 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 11 – Depreciation Allowance: Buildings Question 26 Part (a) Better Investment Limited had acquired a 3-storey building (which was not a mill, factory or other similar premises) which it eventually let to three different tenants: Ground floor The tenant was carrying on a car distributing business. Half of the floor was used as a showroom whereas the other half was utilised as a workshop where motor cars were polished and tuned before being placed in the showroom. First floor The tenant was a radio set manufacturer. A production line had been installed on this floor and production had begun in the relevant period. Second floor The tenant was a fashion trading company. The goods purchased from overseas suppliers were stored in this warehouse before distributing to the local retailers. Required : Discuss whether Better Investment Limited is entitled to industrial building allowance in respect of each of these floors. Part (b) Red Ltd. contracted for an industrial building to be built in Mongkok for its manufacturing business in November 1999 at a construction cost of $2 million. The building was completed and put into use in July 2000. As from June 2006, this building was put out of use because
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11 - BUSI 0018 Hong Kong Taxation Tutorial Questions Unit...

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