State the reasons for the difference? A company resident in Jamaica purchased the following assets in 2021:Cost $ USD38,00050,0004,00072,000AssetHonda Motor car purchased in March 2020Heavy EquipmentComputer (CPU)Factory BuildingsThe corresponding capital deduction rates for structures and improvements, motor vehicles,heavy equipment, and extra heavy equipment in Trinidad and Tobago are 10%, 30%, 33.33%,and 40%. In Jamaica, the capital allowance for plant and machinery with an eight-year lifewas 12.5%, while it was 20% for heavy machinery/equipment, general plant and machinery,and equipment.AssetsHondaHeavyequipmentComputer(CPU)FactoryBuildingsCapitat Allowance DifferenceTrinidad & TobagoJamaicaRateCostRate Amount Cost$38,000.00 30.00% $11,400.00 $38,000.00 20.00%$50,000.00 33.33% $16,665.00 $50,000.00 12.50%$4,000.00 33.33%$72,000.00 10.00%Amount$7,600.00 $3,800.00$6,250.00 $10,415.00$1,333.20$4,000.00 20.00% $800.00 $533.20$7,200.00 $72,000.00 20.00% $14,400.00 -$7,200.00(a) State the reasons for the difference.|

The depreciation deduction rates used by to reduce the value of fixed asset estimating the wear and…

Answered: State the reasons for the difference?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 47P

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