Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.’s operations for the year ending 31 December 2020. Sh ‘
Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.’s operations for the year ending 31 December 2020.
Sh ‘000’
Sh ‘000’
Turnover
19,480
Cost of goods sold
5,620
Gross profit
13,860
Foreign exchange gain
148
Insurance recovery for stolen motor vehicle
968
Proceeds from sale of factory extension
469
40,545
Less Expenses
Directors emoluments and staff costs
16,890
Pension contribution for staff
4,200
Staff recruitment cost
1,148
Purchase of furniture
420
Penalties on overdue VAT
164
Impairment loss of factory extension
150
Mortgage interest
364
Goodwill written off
162
Loan interest
1,286
Depreciation
908
General office expenses
1,348
27,040
13,505
Additional information
Details of property, plants and equipment schedule reflected the following details for the assets that existed before the year ending 31st December 2020:
Assets
Written Down Value 1 Jan 2020
Additions at Cost (2020)
Depreciation (2020)
Disposal Proceeds (2020)
sh.
sh.
sh.
sh.
Computers
525,000
345,400
131,520
250,000
Water pump
–
280,000
56,000
–
Furniture
360,000
140,000
82,000
–
Conveyor belts
–
960,000
–
–
Delivery vans
2,500,000
142,000
180,000
620,000
Cash registers
620,000
–
58,000
–
Printers
120,000
60,000
42,000
–
Tractors
2,500,000
1,800,000
360,000
–
Motorcycles
380,000
–
68,000
–
Packaging machine
–
860,000
–
–
Non-processing machinery
960,000
–
62,000
–
A perimeter wall was constructed at cost of sh.960,000 during the year ending 31st December 2020 used from 1st March 2020
A go down and drainage system were constructed at cost sh.2,860,000 and sh.1,780,000 respectively put into use on 1st April 2020.
The company constructed a borehole at cost of sh.1,500,000 during the year which was put in use on 1st July 2020
Required
Capital allowance due to Maendeleo ltd for the year ending 31st December 2020
Determine the adjustable taxable income for the year 2020
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