Question
(a)After 2 years, Zirco incurred expenditure on the alteration of the factory on the following expenses: i)Repaired part of the roof at the production section
(a)After 2 years, Zirco incurred expenditure on the alteration of the factory on the following expenses:
i)Repaired part of the roof at the production section with a new roof of the same quality because of roof leaking problem.
ii)Removed the entire layer of the slippery cement floor in the packing section and replacing it with quality tiles to avoid the risk of accidents and to smoothen the work process at that section.
iii)Replaced the wall between the section for grading and the section for the placement of machinery with a sound-proof wall. The alteration is needed to reduce noise pollution.
Required:
Justify whether each expenditure mentioned above can be treated as qualifying building expenditure (QBE) for the purpose of claiming IBA.
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