Calculate Capital Allowance for Industrial Oven.

Step 1: Calculate Capital Allowance for Industrial Oven.
The Industrial Oven has an Initial Allowance (IA) rate of $15\%$ and an Annual Allowance (AA) rate of $10\%$.

• Year 2018:
  • Cost of oven purchased in January 2018: $\text{N}20,000$
  • Initial Allowance (IA): $0.15 \times \text{N}20,000 = \text{N}3,000$
  • Annual Allowance (AA): $0.10 \times \text{N}20,000 = \text{N}2,000$