Compute the agriculture allowances or charge for both companies, Gogreen Sdn Bhd and Saveworld Sdn Bhd and for each of the year of assessment until year of assessment 2020. Gogreen Sdn Bhd elect to spread back the agriculture charge under para 27, Schedule 3 of the ITA 1967.

Question 2 Gogreen Sdn Bhd commenced working on cocoa plantation in Sabak Bernam, Selangor in year 2016. Gogreen Sdn Bhd prepares account to 31 May annually. Details of capital expenditure incurred were as follows: Date 1/2/17 1/5/17 8/5/17 10/8/17 30/8/17 31/9/18 2/2/18 5/5/19 20/5/19 15/8/19 Expenditure Land Construction of drainage system Clearing and fertilizing the land Planting of cocoa Purchase of lorry Construction of road Residential house used for the farm manager in town Worker accommodation in the farm Store for the tools and other materials Repair of road RM 287,000 30,000 18,000 26,000 90,000 20,000 310,000 210,000 80,000 15,000 On 1 February 2020, the whole plantation was sold to Saveworld Sdn Bhd for RM2,400,000 which is RM350,000 relates to the cost of land. The company closes its accounts on 31 August every year