Question
A manufacturing company, incurred capital expenditure on a factory building and machinery as follows, for the year ended 30 November 2021: New factory: RM Cost
A manufacturing company, incurred capital expenditure on a factory building and machinery as follows, for the year ended 30 November 2021:
New factory:
| RM |
Cost of land | 130,000 |
Cost of construction | 480,000 |
Legal fees and stamp duty |
|
(including fees for purchase of land RM5,000) | 12,000 |
Plant and design fees for building | 55,000 |
Total cost of factory | 677,000 |
|
|
Plant and machinery; | RM |
Office equipment | 27,000 |
Computer system | 98,000 |
Motor car | 143,000 |
Production machine (heavy machinery) | 580,000 |
|
|
During the year, they sold the following:
| Cost
RM | Residual expenditure RM | Disposal price
RM |
|
|
|
|
Used motor car (purchased in May 2019) | 75,000 | 20,000 | 20,000 |
|
|
|
|
Required:
Compute the capital allowance(s), balancing allowance(s) and or balancing charge(s) for the year of assessment 2021.
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