1 of 1 CHAPTER 2: TUTORIAL 1 INDUSTRIAL BUILDING ALLOWANCES Safety Sdn Bhd carries on the business of manufacturing safety belts. The company prepare it accounts to 31.12 annually. In July 2019, it completed the construction of its own factory at the following costs: RM'000 Land 580 Legal fees for:- Agreement for purchase of land 11 Agreement with the building contractor 10 Consultants fees and building plan 80 Stamp duty of purchase land 9 Construction cost 1,510 Required: i. Compute the qualifying building expenditure (QBE) in YA 2019 Calculate the industrial balancing allowances (IBA) for YA 2019 11. TUTORIAL 2 INDUSTRIAL BUILDING ALLOWANCES Kitty Toys Manufacturing Sdn Bhd has been in business of manufacturing toys for sale in Japan since 2009. The company commences construction of factory building on 1.3.2013 and completed the building on 1.12.2015 The cost of land and the building is as follows: RM'000 190 10 Cost of land Legal fee and stamp duty on acquisition of land Architect's fees Building and approval fee Construction costs Wiring and plumbing 30 20 850 100 20% of the floor space of the factory building was used as an office. Compute the qualifying building expenditure. Required: i Compute the qualifying building expenditure in YA 2015 ii. Calculate the industrial balancing allowances for YA 2015