Agriculture Allowance (Sample q&a)

1 Kinabalu Farm (Kinabalu) grows vegetables. Kinabalu commenced its operations on 1 January 2016 and closes its accounts on 31 December annually. Details of the expenditure incurred by Kinabalu in the two years ended 31 December 2016 and 2017 are as follows:

Assets acquired or constructed during the year ended 31 December 2016

(i) Land

(ii) Mill

(iii) Clearing of land for cultivation (iv) Planting of vegetable seedlings

RM

25,000 300,000 10,000 8,000

Assets acquired or constructed during the year ended 31 December 2017

(v) Construction of bridge

(vi) Shed for farm tools

(vii) Workeraccommodationlocatedonthefarm (viii) Residential house used by a senior manager

in an estate intownabouttenkilometers

from the farm

(ix) Replanting of vegetable seedlings

Required:

RM

60,000

12,000 140,000

160,000 2,000

(a) Compute the agriculture allowances available to Kinabalu Farm for each of the years of assessment 2016 and 2017.

Note: You should list all of the items (i) to (ix) and indicate by the use of the word nilanyitemforwhichan allowance isnotavailable.

(b) Compute the agriculture charge for the year of assessment 2019, if any, if Kinabalu Farm disposed of the mill for RM180, 000 on 10 January

2019.

(c) State, with reasons, whether there would be an agriculture charge if Kinabalu Farm did not dispose of the mill until the year

2023.

Agriculture Allowance Sample obta 1 Kinabalu Farm (Kinabalul grows vegetables, Kinabalu commenced its operations on January 2016 and closes its accounts on 31 December annually. Details of the expenditure incurred by Kinabalu in the two years ended 31 December 2016 and 2017 are as follows: Assets acquired or constructed during the year ended 31 December 2016 RM (0) Land 25,000 300,000 w) Clearing of land for cultivation 10.000 e Planting of vegetable seedings 8,000 Assets acquired or constructed during the year ended 31 December 2017 RM 1 Construction of bridge 1) Shed for farm tools 12.000 wi) Worker accommodation located on the farm 140,000 il Residential housessed by a senior manager 160.000 In an estate in town about ten kilometers from the farm fix) Replanting of vegetable seedings 2.000 Required Compute the agriculture allowances available to Kinabalu Form for each of the years of assessment 2016 and 2017. Note: You should listall of the tems() (lx) and indicate by the use of the word an is not b) Compute the agrkulture charge for the year of assessment 2019, if any, If Kinabalu Farm disposed of the mill for RM100,000 on 10 January 2019 4) State, with remens, whether there would be an agriculture charge beleform did not dispose of the mill until the year 202)