Naturelizer Sdn Bhd is an organic fertilizer manufacturer and prepares its account on 31Decemberannually. Naturelizer Sdn Bhdincurred the following expenditure for the purpose of its business

(i) Naturelizer Sdn Bhd constructed a new factory building which commences on 1April 2019 and was completed on 27January 2020. The building was immediately put to use for the production of the organic fertilizers. Below is the detail of the expenditure incurred:

(ii) Naturelizer Sdn Bhd purchased a second-hand residential house in December 2020, costing RM350,000, including RM50,000 being the cost of land. The house is used as a living quarters for the factory workers.

(iii) The company bought a power generator with the cost of RM90,000, installed in July 2020 within the factory compound. The cost of preparing site for installing the generator was RM10,000. Naturelizer Sdn Bhd paid half of the cost and another half was paid by its subsidiary company whose office is located adjacent to Naturelizer Sdn Bhds factory compound.

QUESTION

Compute the capital allowance and balancing allowance/charge(if any)applicable to Naturelizer Sdn Bhd for the year of assessment 2020.

Date Expenditure 01 April 2019 Cost of land 03 May 2019 Legal fee for land acquisition 04 May 2019 Stamp duty for land purchasing agreement 28 May 2019 Architect's fees 30 May 2019 Clearing of land 01 November 2019 Construction cost of building 01 December 2019 Drainage and irrigation 05 January 2020 Fencing 06 January 2020 Electrical wiring and fittings 31 January 2020 Road and car park within the factory compound 03 February 2020 Store for storing raw materials 10 February 2020 Distribution warehouse for storage of finished products. The warehouse is located 30km away from the factory compound 31 March 2020 Staff cafeteria within the factory compound that was put to use on 15 April 2020 RM 100,000 5,000 1,000 30,000 15,000 500,000 40,000 35,000 25,000 60,000 55,000 70,000 65,000 Date Expenditure 01 April 2019 Cost of land 03 May 2019 Legal fee for land acquisition 04 May 2019 Stamp duty for land purchasing agreement 28 May 2019 Architect's fees 30 May 2019 Clearing of land 01 November 2019 Construction cost of building 01 December 2019 Drainage and irrigation 05 January 2020 Fencing 06 January 2020 Electrical wiring and fittings 31 January 2020 Road and car park within the factory compound 03 February 2020 Store for storing raw materials 10 February 2020 Distribution warehouse for storage of finished products. The warehouse is located 30km away from the factory compound 31 March 2020 Staff cafeteria within the factory compound that was put to use on 15 April 2020 RM 100,000 5,000 1,000 30,000 15,000 500,000 40,000 35,000 25,000 60,000 55,000 70,000 65,000