PS Manufacturing Bhd incurred the following expenditures during its financial year ended 31 January 2020:

1. Cost of constructing an extension to an existing factory building amounting to RM80,000. The extension was completed in March 2019 and used as staff recreation room since April 2019.

2. Cost of constructing a new building amounting to RM410,000. The building was completed in May 2019. 40% of the building was used to provide child care facilities for staff since July 2019. 60% of the building was used by a tenant for operating kindergarten since August 2019.

3. Cost of preparing site for the installation of new heavy machinery amounting to RM7,400. The cost of the machinery is RM82,000.

In September 2019, the company brought in machinery used by its overseas branch into the business in Malaysia. The market value and net carrying amount of the used machinery on the date of transfer were RM36,000 and RM44,000 respectively. Its original cost was RM60,000.

In October 2019, the company bought a new motor car for its business under hire purchase. The cash price of the car was RM148,000. The company traded in its old motor car for RM40,000 and agreed to pay a monthly instalment of RM3,450 for 36 months, commenced on 28 October 2019.

Required:

a) Determine the amount of qualifying expenditure and compute the allowances claimable by PS Manufacturing Bhd under Schedule 3 of the Income Tax Act 1967 for each of the assets for the year of assessment 2020. Explain your basis of excluding any expenditure from your computation.

b) Compute the balancing allowance or charge if the motor car is sold for RM88,000 in May 2022.