1. MS Sdn.Bhd assembles bicycles. MS closes its accounts annually on 30 September and, in its year ended 30 September 2020, it carried out the following transactions relating to non-current assets:

• MS acquired a new machine for RM100,000 on 22 July 2020. A further RM360,000 was incurred in respect of site preparation and cutting and leveling the land to install the machine. The machine was first used in the business on 1 September 2020.

• An air-conditioner which had been acquired on 23 April 2018 for RM1,200, was sold for scrap on 2 August 2020 for RM100. MS had claimed this air-conditioner as a small value asset when it was acquired.

• In May 2020, MS constructed a workshop for RM60,000. The workshop was immediately put into use for the repair of motor cycles, an activity which is incidental to MS's business of selling motor cycles.

• MS owns a factory building, which was acquired in 2016 for RM1,000,000, and currently has residual expenditure of RM810,000. During the year, MS embarked on an expansion project, which included extending the rear of this factory building to provide storage space to meet increased production. The construction of the extension was completed in December 2020 and cost RM800,000.

1. Provide the decisions in "Sabine v.Lookers Ltd (38 T.C. 120)" and "Van den Bergh Ltd v. Clark (19 T.C. 390) pertaining to capital expenditure.