Part B Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your first assignment your supervisor asked you to assist him with the income tax computation of a small business in the tourism sector. The company provided the following information: Allen’s Rest Well Resort is a resort cottage located incorporated in Jamaica. The company is a registered tourism operator under the Tourist Board Act. The hotel commenced operations on the 1 January 2019. Fixed Assets Cost (J$) TWDV (J$) Building (hotel) 100,000,000 72,000,000 Furnitures 8,000,000 6,000,000 Computers (laptops and CPUs) 1,000,000 500,000 Computers (printers and monitors) 500,000 375,000 Motor Cars # 1 purchased in July 2019 # 2 purchased January 2019 3,000,000 2,500,000 2,437,500 1,875,000 Bus and Vans (purchased 1 January 2019) 8,00,0000 480,000 The following acquisitions and disposal occurred in 2021: 1. A Corolla motor car purchased for $3,000,000. Acquired 1 April 2021. 2. A BMW for $10,000,000. Acquired 1 November 2021. 3. A new building constructed for $30,000,000 4. Laptop for $100,000 5. Purchase of a telephones for $950,000. 6. The company Motor car #1 was sold for $2,700,000 Assume the relevant exchange Rate is US$152: J$1 Required Calculate the capital allowance computation for Allen’s Rest Well Resort for 2021. Part BCongratulations on your appointment as a Tax Trainee at a recognized audit firm inJamaica. On your first assignment your supervisor asked you to assist him with theincome tax computation of a small business in the tourism sector. The companyprovided the following information:Allen's Rest Well Resort is a resort cottage located incorporated in Jamaica. Thecompany is a registered tourism operator under the Tourist Board Act. The hotelcommenced operations on the 1 January 2019.Fixed AssetsCost (J$)TWDV (J$)Building (hotel)100,000,00072,000,000Furnitures8,000,0001,000,0006,000,000Computers (laptops and CPUS)Computers (printers and monitors)500,000500,000375,000Motor Cars# 1 purchased in July 20193,000,0002,437,500# 2 purchased January 2019Bus and Vans (purchased 1 January 2019)2,500,0008,00,00001,875,000480,000The following acquisitions and disposal occurred in 2021:1. A Corolla motor car purchased for $3,000,000. Acquired 1 April 2021.2. A BMW for $10,000,000. Acquired 1 November 2021.3. A new building constructed for $30,000,0004. Laptop for $100,0005. Purchase of a telephones for $950,000.6. The company Motor car #1 was sold for $2,700,000Assume the relevant exchange Rate is US$152: J$1RequiredCalculate the capital allowance computation for Allen's Rest Well Resort for 2021. (12

Tax Written Down Value (TWDV): The tax written down value (TWDV) of a resource is the use remaining…

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SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter15: S Corporations

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Part B Congratulations on your appointment as a Tax Trainee at a recognized audit firm in Jamaica. On your first assignment your supervisor asked you to assist him with the income tax computation of a small business in the tourism sector. The company provided the following information: Allen’s Rest Well Resort is a resort cottage located incorporated in Jamaica. The company is a registered tourism operator under the Tourist Board Act. The hotel commenced operations on the 1 January 2019. Fixed Assets Cost (J$) TWDV (J$) Building (hotel) 100,000,000 72,000,000 Furnitures 8,000,000 6,000,000 Computers (laptops and CPUs) 1,000,000 500,000 Computers (printers and monitors) 500,000 375,000 Motor Cars # 1 purchased in July 2019 # 2 purchased January 2019 3,000,000 2,500,000 2,437,500 1,875,000 Bus and Vans (purchased 1 January 2019) 8,00,0000 480,000 The following acquisitions and disposal occurred in 2021: 1. A Corolla motor car purchased for $3,000,000. Acquired 1 April 2021. 2. A BMW for $10,000,000. Acquired 1 November 2021. 3. A new building constructed for $30,000,000 4. Laptop for $100,000 5. Purchase of a telephones for $950,000. 6. The company Motor car #1 was sold for $2,700,000 Assume the relevant exchange Rate is US$152: J$1 Required Calculate the capital allowance computation for Allen’s Rest Well Resort for 2021.

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