Kesxesan Sdn Bhd. manufactures bathroom accessories. The paid-up ordinary share capital is RM1 million as at 1st January 2020. The financial year is ended 31 December. The following expenditure was incurred during the financial year:- Heavy Machinery (hire purchase ) 1 Jan 2020 Deposit RM100,000 03 Jan 2020 Principal payment RM900.000 Interest payment RM200,000 RM 8,000 General Machinery Cost Cost of leveling land for -Installation of machinery RM 2,000 (iii) RM 75,000 Motorcar (2nd hand Toyota ) (Use for Manager) New Van (use for business) RM 125,000 Required: (a) Compute the capital allowances for the year of assessment 2020 for Keevesan Sdn Bhd. (12 marks) (b) Describe the conditions to be eligible to claim capital allowances. (3 marks) (c) Explain the following terms (i) Initial allowance vs annual allowance (11) Balancing allowance vs balancing charge (11) Capital allowance vs revenue allowance (iv)Ruling for 75% on industrial building (v) Ruling for 10% on machinery (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) [Total: 25 Marks] | Capital allowances No. Asset 1 Heavy machinery General plant and machinery Furniture and fixtures Office equipment 5 Motor vehicles 6 Industrial building Initial allowance 20% 20% 20% 20% 20% 10% Annual allowance 20% 14% 10% 10% 20% 3% Qualifying expenditure (QE) for non-commercial vehicle is restricted to the maximum amount below: Non-commercial vehicle Maximum QE (RM) New vehicle purchased on or after 28 October 2000 where on-the-road price is RM150,000 or less 100,000.00 Vehicles other than the above 50,000.00 5.1 5.2