A Forest Tree Fellers Ltd. commenced business on 1 January 2005.
The following fixed assets of the company which it acquired prior to the
commencement of the business were stated at their written down values as at 1
January 2005:

Milling machine
Fork lifts
Tractors
Lorries – 200 tones
Packaging machine
Crushing machine
Conveyor and sorter
Two pick-ups
One lorry
Saloon cars
Furniture and fittings
Land
3,440,000
1,720,000
7,800,000
2,400,000
3,500,000
3,680,000
6,240,000
1,800,000
2,400,000
780,000
544,000
20,000,000
The building in which the processing was to be carried out was constructed in 2003
but was first used for manufacture in 2005.
The building cost sh.13,600,000 in 2003 and the estimated value in January 2005 was
sh.11,400,000.
In 2005 the company bought the following assets:
Sh.
Toyota-saloon car
Lorry
Tractor
Furniture
Land
Pick-up
Computers
Computer scanner
Printers
Milling machine
2,700,000
5,200,000
3,540,000
280,000
6,240,000
4,000,000
50,000
400,000
200,000
5,550,000
The following assets were also disposed of in 2005:
Sh.
Forklift
Saloon car
Printer
Land
Packaging machine
480,000
920,000
50,000
2,240,000
4,500,000

A tractor was damaged through a road accident during the year and the insurance
company paid Sh.3,200,000 as compensation.
Required:
Capital allowances for the company for 2005. (12 marks)