Fius Mining Bhd (financial year-end 31 December) has ventured in mining operation since 2014. After conducting prospecting activities for approximately three years, the company had succeeded in discovering a ruby at the end of August 2017. The useful life of the ruby mine was estimated to be seven years. The expenditures incurred on the mine include RM3,300,000 for the cost of the ruby field, RM210,000 for testing deposits of minerals, RM130,000 for the construction of an access road to the mine and RM560,000 for the construction cost of labour quarters. The gross income reported for the year of assessment 2020 is RM2,200,000. Unfortunately, on 31 August 2020, the company ceased the ruby mining operation, and the mine was subsequently disposed of on 23 December 2020 due to the effect of Covid-19 pandemic. The recovered expenditure received was RM1,300,000.

REQUIRED:

Advice Fius Mining Bhd for the best option relating to the election under Para. 15 of the Income Tax Act 1967 in arriving at the adjusted income for the relevant years of assessment. Justify your answer and support with relevant computations.