Capital Allowance

2. Mr X commenced business as a printer in 2015. He makes up his accounts to 31 December annually. Upon commencement of his business acquired the following assets:

RM

Printing machine 150,000

Office equipment 35,000

Delivery truck 85,000

Personal computer system 1 15,000

In the year 2017, he acquired additional assets for the business as follows:

RM

Personal computer system 2 10,000

Furnitures and fittings 5,000

In 2017 also disposed of personal computer system 1 for RM1,000 as it had become obsolete.

Required:

1. Calculate the residual expenditure of each of the assets at the end of the year of assessment 2016 and 2017
2. Calculate the balancing allowance or balancing charge in respect of personal computer system 1 disposed of in 2017.