a) Kennedy was a director of Locke Sdn Bhd, the outstanding balance of an amount he borrowed from the company was RM12,000. In YA2020, Kennedy was dismissed due to misconduct, as a result, the company paid him a compensation amounted to RM20,000 and the balance of the loan made to him by the company was written off as a bad debt. Required: State, with reasons, whether Locke Sdn Bhd is eligible to claim deduction for the amounts above