1. NIzas Development, a partnership in property development business, owned by Niza and Iza. The business has two on-going projects concurrently. Project A is expected to be completed by 2021 and Project B by fourth quarter of 2022. The following information is provided by the partnership:

Total estimated profit of the projects:

Project A RM43,200

Project B RM55,880

Total cost of the projects:

Project A RM34,400

Project B RM78,600

Payment received and receivable:

	2019	2020	2021	2022
Project A	30,300	35,800	11,500	-
Project B	48,950	48,880	21,100	15,550

REQUIRED:

Compute the estimated gross profit for each relevant years of assessment of the two projects.

2. Based on the information in (A) above, in year 2020, there is a variation in the development cost in respect of Project B. Accordingly, the increment of RM4,400 in the total cost had resulted in a change of the estimated gross profit.

REQUIRED:

Discuss tax implication and treatment due to the increment of the total cost on the estimated gross profit for each year of the Project B. Justify your answer and support with workings.