Dodo Bhd, a tax resident manufacturing company and located in Kuala Lumpur. The company has purchased...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dodo Bhd, a tax resident manufacturing company and located in Kuala Lumpur. The company has purchased a land on 1 April 2015 to construct a new building. The land was occupied as residential areas by illegal immigrants and thus, a total cost of RM50,000 was incurred to demolish the squatter houses. In relation to the construction process, the following expenditures were incurred as at 31 December 2015: Land cost Legal fee for land acquisition Architect's fee Wiring, plumbing & fittings Drainage system Construction costs On 10 January 2017, the construction was completed and immediately put into use. The building total built-up was 60,000 sq.ft which the following usage: Factory Administration office Employees' lounge Showroom RM 2,000,000 20,000 150,000 180,000 45,000 4,500,000 6,895,000 40,000 sq.ft 7,000 sq.ft 10,000 sq.ft 3,000 sq.ft Apart of that, in the year 2020, the company has completed constructed another building to be used as living accommodation for factory workers at a cost of RM550,000. A building located 10 kilometers away from the factory building has been leased out by the company since year 2019 to be used as store. The company paid RM5,000 per month to the lessor and incurred additional cost of RM15,000 to renovate it. Apart of that, in the year 2020, the company has completed constructed another building to be used as living accommodation for factory workers at a cost of RM550,000. A building located 10 kilometers away from the factory building has been leased out by the company since year 2019 to be used as store. The company paid RM5,000 per month to the lessor and incurred additional cost of RM15,000 to renovate it. Required: i. Calculate the industrial building allowances for all relevant till year of assessment 2020 for all buildings. (15 marks) (CLO1:PLO1:C4) Dodo Bhd, a tax resident manufacturing company and located in Kuala Lumpur. The company has purchased a land on 1 April 2015 to construct a new building. The land was occupied as residential areas by illegal immigrants and thus, a total cost of RM50,000 was incurred to demolish the squatter houses. In relation to the construction process, the following expenditures were incurred as at 31 December 2015: Land cost Legal fee for land acquisition Architect's fee Wiring, plumbing & fittings Drainage system Construction costs On 10 January 2017, the construction was completed and immediately put into use. The building total built-up was 60,000 sq.ft which the following usage: Factory Administration office Employees' lounge Showroom RM 2,000,000 20,000 150,000 180,000 45,000 4,500,000 6,895,000 40,000 sq.ft 7,000 sq.ft 10,000 sq.ft 3,000 sq.ft Apart of that, in the year 2020, the company has completed constructed another building to be used as living accommodation for factory workers at a cost of RM550,000. A building located 10 kilometers away from the factory building has been leased out by the company since year 2019 to be used as store. The company paid RM5,000 per month to the lessor and incurred additional cost of RM15,000 to renovate it. Apart of that, in the year 2020, the company has completed constructed another building to be used as living accommodation for factory workers at a cost of RM550,000. A building located 10 kilometers away from the factory building has been leased out by the company since year 2019 to be used as store. The company paid RM5,000 per month to the lessor and incurred additional cost of RM15,000 to renovate it. Required: i. Calculate the industrial building allowances for all relevant till year of assessment 2020 for all buildings. (15 marks) (CLO1:PLO1:C4)
Expert Answer:
Answer rating: 100% (QA)
Industrial building allowances Factory building RM1200000 A... View the full answer
Related Book For
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following is the statement of financial position of TT and Co. (see Self-Assessment Question 3.1 on page 113) at the end of its first year of trading: Statement of financial position as at 31...
-
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
-
In Problems 1158, perform the indicated operation, and write each expression in the standard form a + bi. 1-9 1 + i
-
Martin Company reports the following costs and expenses in May. From the information, determine the total amount of: (a) Manufacturing overhead. (b) Product costs. (c) Period costs. Factory utilities...
-
How can good internal control of purchases protect a firm from fraud and errors and from excessive investment in merchandise?
-
The assets, liabilities, stockholders equity, revenues, and expenses of Carter Design Studio, Inc., have the following balances at December 31, 2010, the end of its first year of operation. During...
-
Ever Clean Company provides gutter cleaning services to residential clients. The company has enjoyed considerable growth in recent years due to a successful marketing campaign and favorable reviews...
-
2. Suppose a business takes out a $300,000, ten years loan at 8 percent. The business wants to make equal principal payments over the period. Prepare an amortization schedule for this loan.
-
Crawford Labs has increased its profitability dramatically by using models to allocate its sales force among the company's major drugs. To guide that effort, a nonlinear sales-response curve is...
-
In 2008, the population of China was 1.3 billion and real GDP (in purchasing power parity prices) was $4.4 trillion. In the same year, the population of India was 1.2 billion and real GDP (in...
-
In pricing menu items, Coquitlam Grill restaurant uses a contribution margin pricing system. Maria Stevens, who works as the restaurant's manager has calculated that the cost to make a veggie burger...
-
What type of cash flow should you use in valuation for this company? What type of valuation model should you use? Consider DCF and Relative Value. Are the valuations consistent? What is your estimate...
-
Discuss five intermediation services performed by financial intermediaries when direct financial claims are being transformed into indirect financial claims.
-
If three different forces acted from the single point is going towards different directions with various magnitude as given below. Represent these three forces in vector form and, use appropriate...
-
using the sample, we estimated the coefficient on the size variable as 0.3199, versus 0.2648 in the above regression. Discuss whether there is an inconsistency in these results.
-
how many turns should B make to drive part A one full turn? 1 3/5 times 2 One 3 Three 4 B cannot drive a one full turn B 3
-
What are bounds and what do companies do with them?
-
Segmental information relating to Turner plc for the year to 30 April 2015 is: Required: Analyse the performance of each of the three main business segments for the year and comment on your results....
-
Promptprint Ltd, a printing business, has received an enquiry from a potential customer for the quotation of a price for a job. The pricing policy of the business is based on the plans for the next...
-
Arkwright Mills plc is considering expanding its production of a new yarn, code name X15. The plant is expected to cost £1 million and have a life of five years and a nil residual value. It...
-
Assume the National Post completed the following transactions for one subscriber during 2020: Required 1. Using the account title Unearned Subscription Revenue, journalize the transactions above. 2....
-
The law firm Garner & Brown received from a large corporate client an annual retainer fee of \(\$ 60,000\) on January 2,2020 . The fee is based on anticipated monthly services of \(\$ 5,000\)....
-
Chez Nous Limited, a new company, made sales of 20,000 units at a cost of \(\$ 40\) per unit. The company offers a one-year warranty that replaces any defective units with a new one. The company...
Study smarter with the SolutionInn App