A) Eazy Sdn Bhd owns the entire paid-up share capital of a newly incorporated company, Xian Sdn Bhd. On 1 December 2015, Xian took over from Eazy its manufacturing business and assets and commenced to carry on the business. The assets were taken over from Eazy included:

	Cost to Xian RM	Cost RM	Acquisition by Eazy in the basis period for YA
Machinery 1 - General	200,000	280,000	2014

On 1 June 2016, Xian purchased additional machinery 2 to expand its manufacturing capacity at a coat RM300,000 and put it into use immediately.

Ordinary share capital for the two companies exceeded RM2.5 million.

Required:

Briefly explain why Xian Sdn Bd did not qualify for reinvestment allowance for the year of assessment 2016.

B) In the year to 30 November 2019. Xian will incur the following capital expenditure:

Date	Item	Purchase (RM)
1 January 2019	New production line to automate manufacturing	500,000
1 July 2019	Grinding machine for factory use (from Eazy cost in YA 2018 RM30,000)	20,000

No additional plant was acquired for the financial years 2017 and 2018.

Required:

State with reasons, whether Xian qualifies for reinvestment allowance for the year of assessment 2019 covering the following:

1. The time when the qualifying period commences
2. The time when the qualifying periods ends.

C) For the year of assessment 2019, Xian's capital allowance and adjusted income are RM525,000 and RM244,200 respectively. Xian Sdn Bhd also received a rental income of RM50,000 and donation to an approved institution amounted to RM75,000.

Required:

Compute the Chargeable Income of Xian Sdn Bhd for the year of assessment 2019

D) Xian Sdn Bhd incurred additional capital expenditure on plant and machinery of RM1 million for the expansion of its existing business for the year ended 30 November 2022.

Required:

Explain to the directors of the company whether its qualifying period for reinvestment allowance is extended accordingly.