Mamak Trading constructed a factory at a cost of RM1.9 million of which RM700,000 was the land. The building was completed on 1 November 2014 and 1/8 of the building was used as an office. On 1 February 2019, the building was sold to Malim Jaya for RM3.1 million, including RM1 million for the land. Malim Jaya used the whole building as a factory.

 

An extension to the building costing RM120,000 was constructed by Malim Jaya on 2 May 2019. The extension was completed and brought into use as a warehouse for the storage of raw material for manufacturing. Both company close their accounts on 31 December annually.

 

Required:

 

Calculated the industrial building allowances for both companies for all the relevant years of assessment up to and including year of assessment 2020.