A. Crizpie Berhad (CB), a Malaysian resident company since 1999. Its business is dealing with retailing...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A. Crizpie Berhad (CB), a Malaysian resident company since 1999. Its business is dealing with retailing household groceries and CB has many outlets all over Malaysia. Its issued share capital is RM5 million. The following information pertaining to expenditure were extracted from financial data of CB for the year ended 31 December 2021. 1. 2. 3. 4. Gift of laptops to primary school to support e-learning during Covid-19 pandemic amounted to RM34,500. CB has a subsidiary, namely MoonLight Sdn Bhd (MLSB), which is a Malaysian tax resident and its shareholdings in MLSB is 90%. MLSB has issued capital of RM3.5 million and it has the same financial year end with CB. Currently CB and MLSB are not enjoying any form of tax incentives. a. Cost of souvenirs of RM45,900 distributed at an approved international trade fair in Dubai to promote its products. New signatured board displayed at highways costing RM15,400. CB took a bank loan of RM450,000 from CXMB bank in October 2020 for investment in fixed deposit (RM130,000) and the remaining of RM320,000 for working capital of the business. The bank charged interest on loan for year of assessment 2021 amounted to RM31,500. For year of assessment 2021, MLSB suffered adjusted loss amounted to RM700,000 while CB has an aggregate income of RM2.1 million. The loss is due to the impact of pandemic Covid-19 on the business operation in 2021. Required: b. Explain the tax treatment for the above expenditures incurred in arriving at the adjusted income. (8 marks) Discuss whether MLSB and CB are entitled for group relief loss. (3 marks) A. Crizpie Berhad (CB), a Malaysian resident company since 1999. Its business is dealing with retailing household groceries and CB has many outlets all over Malaysia. Its issued share capital is RM5 million. The following information pertaining to expenditure were extracted from financial data of CB for the year ended 31 December 2021. 1. 2. 3. 4. Gift of laptops to primary school to support e-learning during Covid-19 pandemic amounted to RM34,500. CB has a subsidiary, namely MoonLight Sdn Bhd (MLSB), which is a Malaysian tax resident and its shareholdings in MLSB is 90%. MLSB has issued capital of RM3.5 million and it has the same financial year end with CB. Currently CB and MLSB are not enjoying any form of tax incentives. a. Cost of souvenirs of RM45,900 distributed at an approved international trade fair in Dubai to promote its products. New signatured board displayed at highways costing RM15,400. CB took a bank loan of RM450,000 from CXMB bank in October 2020 for investment in fixed deposit (RM130,000) and the remaining of RM320,000 for working capital of the business. The bank charged interest on loan for year of assessment 2021 amounted to RM31,500. For year of assessment 2021, MLSB suffered adjusted loss amounted to RM700,000 while CB has an aggregate income of RM2.1 million. The loss is due to the impact of pandemic Covid-19 on the business operation in 2021. Required: b. Explain the tax treatment for the above expenditures incurred in arriving at the adjusted income. (8 marks) Discuss whether MLSB and CB are entitled for group relief loss. (3 marks)
Expert Answer:
Answer rating: 100% (QA)
ANS WER The amount in the fund on December 31 2011 would be 21 8 13 WORK ING We can use ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A depositor puts $25,000 in a savings account that pays 5% interest, compounded semiannually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing...
-
What will be the 13C frequency setting of an NMR spectrometer that operates at 100 MHz for protons?
-
What will be the effects (increase, decrease, or no effect) on total assets, total liabilities, and total stockholders equity in each of the following situations? When shareholders equity changes,...
-
The Cano Company is decentralized, and divisions are considered investment centers. Cano has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division...
-
a. What is the amount of the annual limitation placed on the deductibility of investment interest expense? b. Explain how net investment income is calculated. c. Is any disallowed interest expense...
-
A retired couple have $600,000 to invest and want to earn $60,000 per year in interest. The safer investment yields 9.5%, but they can supplement their earnings by investing some of their money at...
-
Expand the following: 1. \(\left(11^{4} ight)^{12}\) 2. \(\left(a^{7} ight)^{6}\)
-
Willow Turenne Company had the following adjusted trial balance.Instructions(a) Prepare closing entries at June 30, 2012.(b) Prepare a post-closing trialbalance. WILLOW TURENNE COMPANY Adjusted Trial...
-
Question 4 A company has assets that will yield $30 million of cash flow in one year, an additional cash flow in two years, and then no subsequent cash flows. The cash flow in two years will be $100...
-
What are the advantages of social entrepreneurship as a way to approach doing business in developing economies outside the United States? What are the disadvantages?
-
Describe functional aggregation and discuss how this is relevant to logistics.
-
Which of the following events most likely indicates the existence of related parties? a. Borrowing a large sum of money at a variable rate of interest. b. Making a loan without scheduled terms for...
-
Discuss the work that an auditor performing an initial engagement needs to perform on opening balances.
-
Give three reasons for using the primarily substantive approach.
-
An auditor obtains knowledge about a new client's business and its industry to a. Make constructive suggestions concerning improvements to the client's internal control. b. Develop an attitude of...
-
A clutch in a motor car is of single-plate type having both sides of the plate effective. It is required to transmit \(35 \mathrm{~kW}\) at \(1500 \mathrm{rpm}\). The axial thrust is \(0.075...
-
ABC Corporation has a convertible preference shares with a 2 for 1 ordinary share conversion basis. Other relevant information on January 31, 2021 is as follows: Preference Share, P40 par, 50,000...
-
President Lee Coone has asked you to continue planning for an integrated corporate NDAS network. Ultimately, this network will link all the offices with the Tampa head office and become the...
-
A 10year $1,000 bond pays a nominal rate of 9% compounded semiannually. If the market interest rate is 10% compounded annually and the general inflation rate is 6% per year, find the actual- and...
-
From the following cash flow diagram, find the value of C that will establish economic equivalence between the deposit series and the withdrawal series at an interest rate of 9% compounded annually....
-
Macintosh Printing Inc. purchased a $20,000 printing machine two years ago. The company expected this machine to have a five-year life and a salvage value of $5,000. Unfortunately, the company spent...
-
3. Under Delaware law, a corporation cannot appear in court without a lawyer, but a partnership can. Fox Hollow Ventures, Ltd., was a limited liability company. One of its employees, who was not a...
-
4. Glenleigh Falls Development Co. was a limited liability company that hired architects John and Marion Zaugg to design a residential golf course. The Zauggs were to receive partial payment for...
-
6. CPA QUESTION A joint venture is a(n): (a) Association limited to no more than two persons in business for profit (b) Enterprise of numerous co-owners in a nonprofit undertaking (c) Corporate...
Study smarter with the SolutionInn App