EcoWorld Sdn Bhd is a manufacturing company and closes its accounts

annually on 31 December. The company acquired a factory building for RM1,500,000

during the year of assessment 2010.

In 2011, the company extended the factory building and incurred the following capital

expenditure:

RM

Levelling of land 10,000

Design fee for factory 18,000

Construction cost for factory extension 102,000

130,000

Required:

Determine the qualifying building expenditure and calculate the industrial building

allowance for the years ofassessment 2010 and 2011 for

(a) The original factory building acquired in 2010; and

(b) The extension made to the factory building in 2011