TerasJaya Sdn. Bhd. (TSB) is a Malaysian resident company in manufacturing sector. The company prepares its...
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TerasJaya Sdn. Bhd. (TSB) is a Malaysian resident company in manufacturing sector. The company prepares its accounts to 31 December annually. During the basis period for the year of assessment 2020, TSB acquired a molding machine (general machine) of RM65,000. Installation cost of alterations to the existing factory building of RM3,000 was incurred before the machine operates. On 1 February 2020, the business disposed of an old truck for RM15,960. The residual expenditure brought forward at 1 January 2020 was RM10,760 In the same year, it acquired new truck (licensed as a commercial vehicle) for the business. The vehicle was acquired on 20 February 2020, under a hire purchase scheme. The cost of the truck was RMI50,000. Deposit of 10% was paid on the same day. The term indicated of 72 months of installment (6 years) starting from 1 April 2020. The loan including interest was RM175,500. On 15 March 2020, the business purchased new generator (general machine) for the factory at a cost of RM30,000. The additional cost of alteration (tunneling & levelling) to the land of RM2,500 was incurred to install the generator. Required: Compute the capital allowances, balancing charge/allowance (if any) for the assets acquired by TSB for the year of assessment 2020. TerasJaya Sdn. Bhd. (TSB) is a Malaysian resident company in manufacturing sector. The company prepares its accounts to 31 December annually. During the basis period for the year of assessment 2020, TSB acquired a molding machine (general machine) of RM65,000. Installation cost of alterations to the existing factory building of RM3,000 was incurred before the machine operates. On 1 February 2020, the business disposed of an old truck for RM15,960. The residual expenditure brought forward at 1 January 2020 was RM10,760 In the same year, it acquired new truck (licensed as a commercial vehicle) for the business. The vehicle was acquired on 20 February 2020, under a hire purchase scheme. The cost of the truck was RMI50,000. Deposit of 10% was paid on the same day. The term indicated of 72 months of installment (6 years) starting from 1 April 2020. The loan including interest was RM175,500. On 15 March 2020, the business purchased new generator (general machine) for the factory at a cost of RM30,000. The additional cost of alteration (tunneling & levelling) to the land of RM2,500 was incurred to install the generator. Required: Compute the capital allowances, balancing charge/allowance (if any) for the assets acquired by TSB for the year of assessment 2020.
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Capital allowance is where a company is allowed a tax relief on the tangible asset... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor-Yi Tsay, Philip Old
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