a. Bo Hong was incorporated on 2.12.2012 and commenced business on 1.1.2013. The first set of accounts was made up to 31.12.2013. Subsequent accounts were made up to 30.9 annually. Capital expenditure on plant and machinery were incurred by the company as follows:

 

	Accounting period	Capital expenditure	Date incurred
i.	2.12.12 to 31.12.2013	RM60,000 (not included RM20,000 being alteration to existing building for installation of plant)	10.12.2012
ii.	Year ended 30.9.2014	RM20,000 (office equipment)	1.11.2014
iii.	Year ended 30.9.2016	RM15,000 for Machine A RM10,000 for Machine B	15.3.2016

 

The company decided to dispose Machine B for RM5,000 on 14.7.2018. 

 

Required:

Calculate the capital allowances and balancing allowance/balancing charge for the company for the relevant YAs up to the YA 2018.

 

2. Random Sdn Bhd bought a cabin and placed it near quarry site operated by the company. The cabin is used as living accommodation for the company’s workers. Upon the completion of work at the quarry, the cabin will be moved to another quarry sites. 

 

Required:

Discuss whether the cabin qualify for capital allowances.