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Plant and Machinery

$1.$ An insurance broker purchased on $1$st July $2022,$ computers and printers for his business at a total cost of $$500,000.$ Computers receive an initial allowance of $25\%$ and an annual allowance of $20\%.$ On $30$th June $2024$ the insurance broker sold the computers and printers for $$150,000.$ Calculate the capital allowances for the years $2022$ to $2024.(1$ Mark$)$

Buildings

$2.$ A hardware store in St$.$ Mary came up for sale and on $1$st May $2021$ two brothers bought it for J$$120$m$.$ It was estimated that included in the price was stock valued at J$$15$m and land worth J$$5$m$.$ The building was solidly constructed of concrete, block and steel. On the $30$th June $2024$ the brothers sold the hardware business for $$105$m of which the building was estimated to be J$$95$m$.$ Calculate the capital allowances for the years $2021$ to $2024.$ An annual allowance of $4\%$ is available. $(2$ Marks$)$

Intangible Asset

$3.$ Producers Jamaica Limited, a food processing business, had a small laboratory and two staff members whose job was to develop new products that could be marketed. During $2023$ after several trails, the team successfully developed a new process for freeze drying bananas. Expenses for $2023-$ salaries, utilities, raw materials$-$ were J$$3$m and in $2024$ it was J$$10$m$.$ Calculate the capital allowances for the years $2023$ to $2024.$ An annual allowance of $20\%$ is available. $(2$ Marks$)$

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