Kinabalu Farm (Kinabalu) grows vegetables. Kinabalu commenced its operations on 1 January 2016 andcloses its accounts...

 

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Kinabalu Farm (Kinabalu) grows vegetables. Kinabalu commenced its operations on 1 January 2016 andcloses its accounts on 31 December annually. Details of the expenditure incurred by Kinabalu in the two years ended 31 December 2016 and 2017 are as follows: Assets acquired or constructed during the year ended 31 December 2016 RM (i) Land (16) MiLl (iii) Clearing of land for cultivation (iv) Planting of vegetable seedlings 25,000 300,000 10,000 8,000 Assets acquired or constructed during the year ended 31 December 2017 RM (v) Construction of bridge 60,000 (vi) Shed for farm tools (vii) Worker accommodation located on the farm (viti) Residential house used by a senior manager in an estate intownabout tenkilometers 12,000 140,000 160.000 fromthe farm (ix) Replanting of vegetable seedlings 2,000 Required: (a) Compute the agriculture allowances available to Kinabalu Farm for each of the years of assessment 2016 and 2017. Note: Youshould listalloftheitems (i) to (ix) and indicate by the use of the word 'nil'anyitem for which an allowance is not available. (b) Compute the agriculture charge for the year of assessment 2019, if any, if Kinabalu Farm disposed of the mill for RM180, 000 on 10January 2019. (c) State, with reasons, whether there would be an agriculture charge if Kinabalu Farm did not dispose of the mill until the year 2023. Kinabalu Farm (Kinabalu) grows vegetables. Kinabalu commenced its operations on 1 January 2016 andcloses its accounts on 31 December annually. Details of the expenditure incurred by Kinabalu in the two years ended 31 December 2016 and 2017 are as follows: Assets acquired or constructed during the year ended 31 December 2016 RM (i) Land (16) MiLl (iii) Clearing of land for cultivation (iv) Planting of vegetable seedlings 25,000 300,000 10,000 8,000 Assets acquired or constructed during the year ended 31 December 2017 RM (v) Construction of bridge 60,000 (vi) Shed for farm tools (vii) Worker accommodation located on the farm (viti) Residential house used by a senior manager in an estate intownabout tenkilometers 12,000 140,000 160.000 fromthe farm (ix) Replanting of vegetable seedlings 2,000 Required: (a) Compute the agriculture allowances available to Kinabalu Farm for each of the years of assessment 2016 and 2017. Note: Youshould listalloftheitems (i) to (ix) and indicate by the use of the word 'nil'anyitem for which an allowance is not available. (b) Compute the agriculture charge for the year of assessment 2019, if any, if Kinabalu Farm disposed of the mill for RM180, 000 on 10January 2019. (c) State, with reasons, whether there would be an agriculture charge if Kinabalu Farm did not dispose of the mill until the year 2023.

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Solu tion 6 Agui Avi ultuna lowances yours 2616 and 217 analitying Agriculitere o puditure Ra... View the full answer