Dodo Bhd, a tax resident manufacturing company and located in Kuala Lumpur. The company has purchased...
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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)
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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
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