10 - TA_U10_DA_Plant 1 BUSI 0018 – Hong Kong Taxation...

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Unformatted text preview: TA_U10_DA_Plant 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Tutorial 10 – Depreciation Allowance: Plant and Machinery Answer 23 (a) Computation of depreciation allowance for ABC Limited for 2008/09: 2 % 30% Allowance Reducing value b/f $65,000 $30,000 Addition 8,000 - Less: Initial allowance (60%) (4,800) $ 4,800 $68,200 $30,000 Less: Disposal ( 700)- . $67,500 $30,000 Annual allowance (13,500) ( 9,000) 22,500 Reducing value c/f $54,000 $21,000 $27,300 (b) Depreciation allowance/charge for the old van for 2008/09: Reducing value $4,000 Less: Sale proceeds (trade-in value) (5,000) Balancing allowance /(charge) $(1,000) Depreciation allowance for the new van for 2008/09: Capital payment made: $10,000 + $5,000 + $1,000 x 3 x $25,000/$30,000 = $17,500 A l l o w a n c e Cost (cash price) $40,000 Less: Initial allowance (60% x $17,500) (10,500) $10,500 $29,500 Annual allowance (30%) (8,850) 8,850 Reducing value c/f $20,650 $19,350 TA_U10_DA_Plant 2 Answer 24 Wong Company Calculation of Depreciation Allowances Year of Assessment 2008/09 20% Pool 30% Pool $ $ $ WDV b/f 300,000 200,000 Additions: Office furniture 100,000 Air-conditioning units 20,000 420,000 200,000 Less: Initial allowance 20% Pool ($120,000 x 60%) (72,000) 72,000 348,000 200,000 Addition: Motor vehicle (Note 1) - 21,000 348,000 221,000...
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This note was uploaded on 04/07/2012 for the course TAX 101 taught by Professor Ng during the Spring '12 term at HKU.

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10 - TA_U10_DA_Plant 1 BUSI 0018 – Hong Kong Taxation...

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