Reference no: EM132933213

Question - Jordon Gordon owns a hardware business with two retail outlets in Kingston and Montego Bay. He rents one premises and built the second one at a cost of $5 million in 2013. He bought a truck in 2013 costing $2 million. He uses his Honda motor car (costing $4,500,000 in 2013) 50% for business purposes. In 2014 he sold the Starlet used by his wife for $3,200,000 (Cost $4,250,000 in 2012, 50% business use) and bought her a Toyota Corolla (Cost $5 million on January 1, 2015, 50% business use). On April 1, 2015, he purchased a Nissan motor car for $3,250,000 to be used by a salesman in his business. Private usage by the salesman is estimated to be one third. Mr. Gordon uses plant and machinery in his business which he purchased in June 2013 for $3 million. Furniture and fittings are also used in his business which he bought for $500,000 on January 1, 2013. Mr. Gordon makes up his accounts to 31stDecember each year. Assume an exchange rate ofUS$1 = JMD$125.

Required - Prepare the capital allowance schedules for the following assets, writing appropriate notes up to year of assessment 2015 (Round figures to the nearest dollar)

i. Plant and machinery

ii. Truck

iii. Motor Car

iv. Furniture and fittings

v. Buildings