Jordon Gordon owns a hardware business with two retail outlets in Kingston and Montego Bay. Herents one premises and built the second one at a cost of $5 million in 2013. He bought a truck in2013 costing $2 million. He uses his Honda motor car (costing $4,500,000 in 2.013) 50% for businesspurposes.In 2014 he sold the Starlet used by his wife for $3,200,000 (Cost $4,250,000 in 2012, 50% businessuse) and bought her a Toyota Corolla (Cost $5 million on January 1, 2015, 50% business use). OnApril 1, 2015, he purchased a Nissan motor car for $3,250,000 to be used by a salesman in hisbusiness. Private us age by the salesman is estimated to be one third.Mr Giordion uses plant and machinery in his business which he purchased in June 2013 for $3 million.Furniture and fittings is also used in his business which he bought for $500,000 on January 1, 2013.Mir. Gordion makes up his accounts to 31st December each year. Assume an exchange rate of US$1 =JMD$125.Required:A.prepare the capital allowance schedules for the following assets, writing appropriate notesup to year of assessment 2015 (Round figures to the nearest diollar).

To prepare the capital allowance schedules, we need to first determine the type of assets and their…

Answered: Jardon Gordion owns a hardware business…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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