Calla Sdn Bhd, a resident company in Johor, manufactures both promoted and non-promoted products. The company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calla Sdn Bhd, a resident company in Johor, manufactures both promoted and non-promoted products. The company which has a paid-up capital of RM3 million, closes its accounts on 31 December annually since its incorporation in the year 2012. The company was granted pioneer status incentive effective from 1 January 2020. The three years financial information pertaining to the promoted and non-promoted products of Calla Sdn Bhd are as follow: Promoted products: Adjusted income/(loss) Balancing charge Capital allowance a. Non-promoted products: Statutory Income Adjusted loss Donations to state government Qualifying capital expenditure incurred by Calla Sdn Bhd: Office building Factory building Plant and machinery Fixtures and fittings 2020 RM'000 ii. (125,000) 45,000 120,000 (35,000) 5,000 50,000 2021 2022 RM'000 RM'000 500,000 1,000,000 205,000 230,000 (78,000) 5,000 180,000 100,000 10,000 110,000 18,000 Required: With respect to the tax incentives granted to Calla Sdn Bhd, compute the followings: İ. The income tax payable and amount to be credited to exempt income account for the years of assessment 2020, 2021 and 2022. 150,000 15,000 The amount of investment tax allowance that could be utilised (ITA utilised) in the years of assessment 2020, 2021 and 2022 if Calla Sdn Bhd decided to apply for investment tax allowance incentive instead of pioneer status incentive. Calla Sdn Bhd, a resident company in Johor, manufactures both promoted and non-promoted products. The company which has a paid-up capital of RM3 million, closes its accounts on 31 December annually since its incorporation in the year 2012. The company was granted pioneer status incentive effective from 1 January 2020. The three years financial information pertaining to the promoted and non-promoted products of Calla Sdn Bhd are as follow: Promoted products: Adjusted income/(loss) Balancing charge Capital allowance a. Non-promoted products: Statutory Income Adjusted loss Donations to state government Qualifying capital expenditure incurred by Calla Sdn Bhd: Office building Factory building Plant and machinery Fixtures and fittings 2020 RM'000 ii. (125,000) 45,000 120,000 (35,000) 5,000 50,000 2021 2022 RM'000 RM'000 500,000 1,000,000 205,000 230,000 (78,000) 5,000 180,000 100,000 10,000 110,000 18,000 Required: With respect to the tax incentives granted to Calla Sdn Bhd, compute the followings: İ. The income tax payable and amount to be credited to exempt income account for the years of assessment 2020, 2021 and 2022. 150,000 15,000 The amount of investment tax allowance that could be utilised (ITA utilised) in the years of assessment 2020, 2021 and 2022 if Calla Sdn Bhd decided to apply for investment tax allowance incentive instead of pioneer status incentive.
Expert Answer:
Answer rating: 100% (QA)
a Income Tax Payable and Amount to be Credited to Exempt Income Account Year of Assessment 2020 2021 ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these finance questions
-
Cosmos Sdn Bhd, financial year ends on 31 December annually is a supplier of fresh flowers in Malaysia. For the year of assessment 2020, the estimated income tax payable made by the company amounted...
-
A company closes its accounts on December 31 each year. The company works a five-day work week and pays its employees every two weeks. On December 31, 2013, Norton accrued $4,700 of salaries payable....
-
Question 2 XYZ Berhad closes its accounts on 31 December annually. In January 2018, the company issued 25 million 4% redeemable preference shares at RM1 each. These shares were redeemed at the end of...
-
The curve described by the cable of the suspension bridge shown in Figure 8.70 is given by where x is the distance measured from one end of the bridge. What is the length of the cable (see Example...
-
Translate the following amounts of foreign currency into an equivalent number of U.S. dollars using the exchange rates in Exhibit 15.7. a. 800,000 b. 350,000 c.50,000 Exchange Rate (in foreign...
-
Suppose McCain Foods, the Canadian food products company, is opening a district office in Fredericton, New Brunswick. Wilson Gates, the office manager, is designing the internal control system for...
-
The relatively high resistivity of dry skin, about\(1 \times 10^{6} \Omega \cdot \mathrm{m}\), can safely limit the flow of current into deeper tissues of the body. Suppose an electrical worker...
-
The Cocoa Factory manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: chocolate-powder liquor base and milk-chocolate liquor...
-
Suppose you are playing Scrabble and have the tiles B, L, O, U, T, H, and E, and you have to play the first word. (a) How many permutations of the tiles are there? (b) There are no 7-letter or...
-
Sgt. Barnes is a veteran police officer filing as Head of Household. Currently, her taxable income is $50,000, but has been asked to sit for the Leutenant's exam. She is excited about the opportunity...
-
What is the difference between the expectations theory of the term structure of interest rates and the preferred habitat theory of interest rates?
-
M1+ (gross) consists of Select one: O a. chequing accounts held at Canadian banks. O b. currency outside banks and all chequable deposits at chartered banks, TMLS, and CUCPs. O c. demand deposits...
-
X, is an accrual method, calendar year, taxpayer in the business of sponsoring classical music concerts. X sponsored a concert performed on December 23, 2003. X generated $120,000 of revenue from...
-
Capital Gain Income Last month, your grandfather passed away and left you 500 shares of Apple stock. On the day he passed away, the stock was worth $189 per share. He purchased the shares for $73 per...
-
Darren, a real estate professional, is representing a client who wants to purchase an industrial warehouse. The client will need to obtain a mortgage to finance part of the purchase and can afford an...
-
RFID chips have been used to O track livestock. O track marathon runners' times. O track inventory at retailers. O All of the options are true.
-
Warm and Cosy's demand is seasonal, which means their factory is much busier in winter and that they end up holding a lot of inventory during seasons of low demand. Reducing stock level is a common...
-
Wholesalers Ltd. deals in the sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales. The firms current credit...
-
The bank portion of the bank reconciliation for Katsaris Company at August 31, 2017, was as follows: The unadjusted cash balance per books on September 30, 2017, was $10,228. The September bank...
-
You are given the following information for Churchill Company for the month ended November 30, 2017: Churchill Company uses a perpetual inventory system. All sales and purchases are on account....
-
The unadjusted trial balance for Garden Designs at its year end, April 30, 2017, is as follows: Additional information: 1. $500 of the unearned revenue has been earned by April 30, 2017. 2. The...
-
What role does the HAL play in the platform?
-
If your logic analyzer is capable of on-the-fly disassembly, use it to display bus activity in the form of instructions, rather than simply 1s and 0s.
-
Draw UML state diagrams for device 1 and device 2 in a four-cycle handshake.
Study smarter with the SolutionInn App