QUESTION 3 (30 MARKS) Noor Hamidi Sdn. Bhd. is a resident company in Malaysia and has been appointed as sole dealer of electrical appliance for a company in German. The company is incorporated on 1 April 2019 with a share capital of RM2 million. For the year ended 31 March 2020 the company provide the following information with regards to its income and expenses: Net sales Other Revenue Less: Operating Cost Staff remuneration Donation Insurance Interest Research and Development Bad debts Entertainment Subscriptions Professional fees Miscellaneous Depreciation Net Profit Notes to the accounts: Note 1 RM RM 600,000 2 78,500 678,500 345678 215,000 50,000 18,150 2,913 15,000 10,450 9 30,600 10 6,500 11 8,300 12 12,800 13 32,000 401713 267,787 1. Included in the net sales are: i. The compensation received for RM20,000 from insurance company for loss of merchandise during delivery. ii. The loss from the disposal of company's car Kia Sportage on 31 December 2019. The detail are as follows: Sale proceed Net book value Residual value 2. Other Revenue include: Dividend - Malaysia Tax exempt dividend - Germany (remitted) Interest from a loan to business associates in Malaysia 3. Staff remuneration includes contribution the following: RM 50,000 70,000 65,500 RM 45,000 8,000 25,500 Total employees salary EPF contribution RM 90,000 18,000 Included also in the total employees salary is salary paid to disable worker of RM24,000. 4. Cash donation in respect of donation to State Government to support environmental campaign and donation to approved old folks care center amounting to RM20,000 and RM30,000 respectively.