1. Gilbert Sdn Bhd (Gilbert), Hebrew Sdn Bhd (Hebrew), and Jerald Sdn Bhd (Jerald) are three manufacturers in the same group of companies. Gilbert owns 80% of Hebrew, and Hebrew owns 60% of the equity shares of Jerald. All three companies operate independently with their own board of directors.

 

Gilbert purchased a molding machine for RM1,440,000 on 2 May 2014. The machine commenced production on 16 July 2014. The machine was subsequently sold to Jerald on 25 April 2017 at RM1,350,000.

 

The machine was then used for Jerald’s business until 15 July 2018 and subsequently transferred to Hebrew at RM1,300,000.

 

On 9 October 2020, Hebrew disposed of the said machine to a company outside of the group named Citra Sdn Bhd (Citra) for RM1,375,000. The machine was in use for Citra’s business since end of October 2020.

 

All four companies mentioned above close accounts on 31 December every year. The moulding machine is normal plant and machinery according to IRB’s guidelines.

 

Required

Prepare the computation of capital allowances, balancing allowances and charges, if any, for Gilbert, Jerald, Hebrew and Citra with regard to the machine, for each of the years of assessment up to 2020 (state the respective year of assessments clearly in your computation).