December 2018: Section B Question 5 (c) In January 2014, Deodata Enterprise bought a second-hand 4D...

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December 2018: Section B Question 5 (c) In January 2014, Deodata Enterprise bought a second-hand 4D printing machine that costs RM55,000 with a useful life of four years and a salvage value of RM3,000. Moreover, the company incurred an additional transportation cost of RM1,000. After 4 years, the company has decided to sell the machine at the price of RM27,000. The company has always used the sum- of-years-digit method as their depreciation strategy. The company has an earning before tax of RM50,000. The marginal tax rate is 30 percent and capital gains tax rate is 25 percent. i) Construct the SYDM depreciation for the 4-D printing machine. (6 marks) ii) Calculate the total tax liability that the company has to pay. (4 marks) December 2018: Section B Question 5 (c) In January 2014, Deodata Enterprise bought a second-hand 4D printing machine that costs RM55,000 with a useful life of four years and a salvage value of RM3,000. Moreover, the company incurred an additional transportation cost of RM1,000. After 4 years, the company has decided to sell the machine at the price of RM27,000. The company has always used the sum- of-years-digit method as their depreciation strategy. The company has an earning before tax of RM50,000. The marginal tax rate is 30 percent and capital gains tax rate is 25 percent. i) Construct the SYDM depreciation for the 4-D printing machine. (6 marks) ii) Calculate the total tax liability that the company has to pay. (4 marks)