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 ‘

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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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