Please compute the chargeable income

g

Notes (1) Cost of sales include the following costs: a. Finished goods worth RM 32,000 were stolen from the warehouse of the company. b. Obsolete stock worth RM 29,000 being written off.

(2) Other income comprises of: a. Compensation amounting to RM 200,000 was received from a client of the company for early termination of a contract. b. Dividend amounting to RM 20,000 received from Tenaga Nasional Bhd. c. Compensation of RM 30,000 was received from a local insurance company for the stocks stolen in Note (1) above.

(3) Remuneration expenses include the following: RM Entertainment allowance paid to senior managers * 130,000 Salaries paid to disabled employees ** 65,000 Contribution to unapproved pension scheme 120,000 * It is the policy of the company to contribute 12% of EPF on wages, salaries and allowances of office staff and factory workers. 4 ** The disabled employees are registered to Department of Social Welfare.

(4) Provision for bad and doubtful debts comprise of: General (Trade) Specific (Trade) RM RM Balance as at 1 June 2020 101,000 311,000 Add: Provision for year 95,000 240,000 Less: Amount written off (60,000) (80,000) Balance as at 31 May 2021 256,000 631,000

(5) Professional fees comprise: RM Secretarial fees paid 9,000 Audit fees 19,000 Feasibility study for the expansion of new operations in Thailand 35,000 Non-trade debt collection expenses 6,500

(6) Repair and maintenance expenses include: RM Extension of the companys factory 175,000 Replacement of packing machine 67,000 Renovation of administrative building to ease the access of disabled employees 12,000

(7) Lease rental includes the leasing of a new car for the managing director at a monthly rental of RM 5,000 starting from 1 February 2020, the cost of the car is RM 173,000.

(8) Interest expenses include a RM 25,000 charged by CIMB for a term loan borrowed by the company to finance the investment in Tenaga Nasional Bhd mentioned in Note (2) above.

(9) Before considering the possible adjustments covering Note (1) to (8), capital allowance for plant and machinery and industrial building allowance for YA 2021 are RM 875,000 and RM 157,500 respectively. Required Compute the chargeable income of Computers For All Sdn Bhd for the year of assessment 2021 (YA2021). All workings must be clearly stated.

Computers For All Sdn Bhd (CFA), a Malaysian resident company, is in the business of manufacturing computer parts. The company's income statement for the year ended 31 May 2021 is as follows: Note RM'000 RM'000 Sales 6,180 Less: Cost of sales (1) 1,460 7,640 Other income (2) 250 Less: Depreciation Remuneration Provision for bad and doubtful debts Professional fees Repairs and maintenance Lease rental Interest expenses (3) (4) (5) (6) (7) 441 1,266 160 104 254 453 97 (8) (2,775) 4,865 Profit before tax Computers For All Sdn Bhd (CFA), a Malaysian resident company, is in the business of manufacturing computer parts. The company's income statement for the year ended 31 May 2021 is as follows: Note RM'000 RM'000 Sales 6,180 Less: Cost of sales (1) 1,460 7,640 Other income (2) 250 Less: Depreciation Remuneration Provision for bad and doubtful debts Professional fees Repairs and maintenance Lease rental Interest expenses (3) (4) (5) (6) (7) 441 1,266 160 104 254 453 97 (8) (2,775) 4,865 Profit before tax