Garuda Construction Sdn Bhd (GCSB) purchased an asset costing RM2,111,630 from a supplier on 30/04/2016. GCSB claimed the full cost of the asset as QE in the year of assessment 2016 although there is no payment made for the purchase of the asset and an outstanding balance in the supplier's ledger still shows the amount RM2,111,630?

Required:

Analyze whether GCSB is eligible to claim capital allowance for the year of assessment 2016.