Bioenergy Projects Sdn Bhd was established to provide consultancy services to major multinational companies in the...

   

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Bioenergy Projects Sdn Bhd was established to provide consultancy services to major multinational companies in the northern and central regions of Malaysia. The company makes up its accounts as at 31 December annually. The following transactions occurred during the financial years: Compressor machine The compressor machine was purchased on 20 March 2015 at a cost of RM240,000. The company also incurred RM75,000 and RM30,000 respectively on installation cost and alteration cost. A site was prepared for the installation of the compressor machine and the cost of preparing the site was RM68,000. Heavy machine On 1 May 2015, a heavy machine was brought into business in Malaysia. It was previously used at Singapore office branch. The market value and net book value on the date of transfer were RM120,000 and RM100,000 respectively. The machine was sold for RM53,000 on 22 December 2017 due to some technical problem. Motor vehicle A new lorry costing RM130,000 was purchased under hire purchase agreement on 1 June 2014. The company paid RM10,000 deposit in June 2014 and the balance will be settled via 60 monthly installments. The monthly installment is RM2,300 and the first installment starts in July 2014. The lorry was disposed on 18 September 2017 for RM57,000. Required: Calculate the capital allowances, balancing allowances and balancing charge (if any) in respect of the company's fixed assets for the relevant years of assessment up to year of assessment 2017. (15 marks) (Total: 30 marks) Bioenergy Projects Sdn Bhd was established to provide consultancy services to major multinational companies in the northern and central regions of Malaysia. The company makes up its accounts as at 31 December annually. The following transactions occurred during the financial years: Compressor machine The compressor machine was purchased on 20 March 2015 at a cost of RM240,000. The company also incurred RM75,000 and RM30,000 respectively on installation cost and alteration cost. A site was prepared for the installation of the compressor machine and the cost of preparing the site was RM68,000. Heavy machine On 1 May 2015, a heavy machine was brought into business in Malaysia. It was previously used at Singapore office branch. The market value and net book value on the date of transfer were RM120,000 and RM100,000 respectively. The machine was sold for RM53,000 on 22 December 2017 due to some technical problem. Motor vehicle A new lorry costing RM130,000 was purchased under hire purchase agreement on 1 June 2014. The company paid RM10,000 deposit in June 2014 and the balance will be settled via 60 monthly installments. The monthly installment is RM2,300 and the first installment starts in July 2014. The lorry was disposed on 18 September 2017 for RM57,000. Required: Calculate the capital allowances, balancing allowances and balancing charge (if any) in respect of the company's fixed assets for the relevant years of assessment up to year of assessment 2017. (15 marks) (Total: 30 marks)