ABC Sdn Bhd is a Malaysian tax resident company incorporated in 2018 and makes up its first set of accounts to 31 December 2018. During the Year of Assessment 2018, ABC Sdn Bhd commenced business and purchased the following items in December 2018, all paid in cash / internal funds: Item Computer Stand-alone fax machine Motor vehicle - Toyota Hilux Assumptions: Cost (RM) 8,000 350 108,000 (i) Heavy machinery and motor vehicles Plant and machinery Information and communication technology equipment and software Office equipment, furniture and fittings Small Value Assets Required: (ii) Remarks Bought second-hand from a local second- hand IT-refurbishing shop. The rates of initial and annual allowances are as follows: Y All 'plant and machinery' above are used for the business. ABC Sdn Bhd is the owner of all the above items as at 31st December 2018. ABC Sdn Bhd will attempt to maximize capital allowance claims where possible. Purchase was supported by proper business invoices. Bought 'new' from a local IT shop. Non-commercial vehicle Bought second-hand from a local second- hand car dealer. Initial Allowance 20% 20% 20% 20% Annual Allowance 20% 14% 20% 10% 100% Compute the expected amount of Capital Allowance for the Year of Assessment 2018. Show all workings clearly. (4 marks) Assuming ABC Sdn Bhd only commenced operations in YA 2019 (and not in YA 2018). how would this affect the initial allowance and annual allowance claim for YA 2018 and YA 2019? Justify your answer. (Calculations are not required) (3 marks)

ABC Sdn Bhd is a Malaysian tax resident company incorporated in 2018 and makes up its first set o accounts to 31st December 2018 During the Year of Assessment 2018, ABC Sdn Bhd commenced business and purchased the following items in December 2018, all paid in cash / intemal funds Assumptions: - All 'plant and machinery' above are used for the business. - ABC Sdn Bhd is the owner of all the above items as at 31*t December 2018. - ABC Sdn Bhd will attempt to maximize capital allowance claims where possible. The rates of initial and annual allowances are as follows: Required: (i) Compute the expected amount of Capital Allowance for the Year of Assessment 2018. Show all workings clearly. (4 marks) (ii) Assuming ABC Sdn Bhd only commenced operations in YA 2019 (and not in YA 2018), how would this affect the initial allowance and annual allowance claim for YA 2018 and YA 2019 ? Justify your answer. (Calculations are not required)