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October 18, 2016 at 6:26 pm
Thanks very much for the lecture.
Please kindly help clarify, the AIA is an annual allowance of 500,000 on machinery. However, in the following accounting year end 31 Dec 2016, the AIA was not applied to machinery costing 30,000 for that year.
Or could it be that a company’s assets only qualifies for AIA only at the commencement of the business.
October 22, 2016 at 3:45 pm
The first accounting year was only 6 months so only half of the AIA(250 000) was applicable , the 50 000 difference goes to the main pool and becomes a WDA.
Year 2(full year) only 30 000 was invested and that was a full allowance since it was below 500 000 AIA. Also 18% of the main pool carried forward was an allowance through the WDA. Total capital allowance 31st of December 2016, 30,000 + 8,190 = 38,190
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