a. Based on the provisions of the Income Tax Act, distinguish between trade vehicles and...
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Accounting
a. Based on the provisions of the Income Tax Act, distinguish between trade vehicles and private vehicles and state how each is treated for capital allowances.
b. If Jacobs Ltd bought a motor car which is classified as private vehicle for $1 000 000 on January 1 2014 and sold it for $800 000 December 31, 2015, what would be the capital allowances for the company up to December 2015?
c. Differentiate between a balancing allowance and a balancing charge with the aid of numerical examples.
NB. For any necessary calculation, use JMD 115 to US 1 for exchange rate conversion.
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