MajuTerus Sdn Bhd commenced its manufacturing business in a rented factory on 1 March 2018 and prepares
Question:
MajuTerus Sdn Bhd commenced its manufacturing business in a rented factory on 1 March 2018 and prepares its first set of accounts to 28 February 2019 and to 28 February subsequently. In 2020, the company constructed its own factory building. Expenditures incurred on the construction were as follows:-
RM
Cost of land
900,000
Legal fees and stamp duty (RM30,000 relates to the purchase of land)
100,000
Architect fees
100,000
Construction cost
1,200,000
Drainage and irrigation
200,000
Electrical wiring and fittings
300,000
Cost of machinery
200,000
Cost of preparing site to install machinery
350,000
Landscaping around the factory area
200,000
The building was completed in December 2020 and was immediately used as a factory on 1 January 2021.
Required:
Compute the industrial building allowances on MajuTerus Sdn Bhd for the year of assessment 2021.
Expert Answer:
To compute the industrial building allowances for MajuTerus Sdn Bhd for the year of assessment 2021 ... View the full answer
