a) Ibu Mertuaku Berhad manufactures paper boxes. The company closes its accounts annually on 31 May, and in its year ended 31 May 2022, the company acquired the following assets:

A lorry was acquired under a hire purchase scheme and the relevant details are as follows:

Cost 210,000

Deposit paid on 10 January 2022 30,000

Loan 180,000

Interest 2,000

Instalment period (months) 24

First instalment due on 1 February 2022

A heavy machine was acquired for RM3,000 and used in the company.

A reconditioned van was acquired for RM130,000 to transport their management team. The van was not licensed as a commercial vehicle.

On 3 October 2022, the company bought a folding machine for RM120,000.

Required: Compute the total capital allowances claimable by Ibu Mertuaku Berhad for the above assets for the year of assessment 2022. [30 marks]

b) Labu Labi Sdn Bhd closes its accounts annually on 31 December. On 3 May 2022, the company disposed of a company car for RM60,000. The company acquired the car on a hire purchase basis on 1 July 2020 for RM200,000 for use by the managing director.

The residual expenditure brought forward at 1 January 2022 was RM10,000.

Required: Calculate the balancing adjustment which arises for Labu Labi Sdn Bhd on the disposal of the car on 3 May 2022 for the year of assessment 2022. [5 marks]

c) Not all factories are considered as industrial buildings in tax law. Explain.