Question 3. XYZ Berhad, a manufacturing company, incurred the following expenses during the year ended 31...
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Question 3. XYZ Berhad, a manufacturing company, incurred the following expenses during the year ended 31 August 2020: Cost of land Stamp duty on purchase of land Legal charges on S&P Agreement Cost of construction of the building: A factory A storage building* A canteen and restrooms . ● ● Living quarters for factory worker Living quarters for administrative staff Legal chargers on the Contract agreement for the construction of the buildings Architect fees regarding the buildings RM 300,000 54,000 36,000 90,000 120,000 RM 345,000 5,000 3,000 600,000 10,000 20,000 The construction of the buildings was completed in February 2020 and the building were put into use for the business from March 2020. The company also incurred RM75,000 on cutting and levelling the land to prepare a site for the installation of heavy machinery, costing RM800,000 which was purchased on January 2020. The machinery was put into use for business from march 2020. The storage building which is used for the storage of finished products is adjacent to the factory Required: a Compute XYZ Berbad's capital allowance under Schedule 3 of the Act for year assessment 2020, together with the residual expenditure carried forward. b. Explain your treatment of the cost of cutting and levelling the land. Question 3. XYZ Berhad, a manufacturing company, incurred the following expenses during the year ended 31 August 2020: Cost of land Stamp duty on purchase of land Legal charges on S&P Agreement Cost of construction of the building: A factory A storage building* A canteen and restrooms . ● ● Living quarters for factory worker Living quarters for administrative staff Legal chargers on the Contract agreement for the construction of the buildings Architect fees regarding the buildings RM 300,000 54,000 36,000 90,000 120,000 RM 345,000 5,000 3,000 600,000 10,000 20,000 The construction of the buildings was completed in February 2020 and the building were put into use for the business from March 2020. The company also incurred RM75,000 on cutting and levelling the land to prepare a site for the installation of heavy machinery, costing RM800,000 which was purchased on January 2020. The machinery was put into use for business from march 2020. The storage building which is used for the storage of finished products is adjacent to the factory Required: a Compute XYZ Berbad's capital allowance under Schedule 3 of the Act for year assessment 2020, together with the residual expenditure carried forward. b. Explain your treatment of the cost of cutting and levelling the land.
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a Capital Allowance Cost of land RM345000 Stamp duty on purchase of land RM5000 Legal ch... View the full answer
Related Book For
Introduction To Financial Accounting
ISBN: 9781526803009
9th Edition
Authors: Anne Marie Ward, Andrew Thomas
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