Puan Fatimah is the owner of Permai Trading in Gurun Kedah. The accounts are closed on 31

December annually. She seeks advise from you as her tax agent on the computation of capital

allowances for the non-current assets used in her business as follows:

Machinery

The business acquired imported a machinery (general machinery) on September 2016 costing

RM100,000 from Japan. In addition, the business incurred RM15,000 for installation cost of the

machinery.

Toyota Hilux

On 1 November 2014, a new Toyota Hilux which was licensed for commercial transportation

was acquired on hire purchase terms. The relevant information was as follows:

Cash price

:

RM 105,000

Deposit

:

RM45,000 paid on 1

st

October 2014

Monthly instalment

:

RM2,125 commenced on 30 November 2014

Total instalments

:

48 months

On 15 August 2016, the Toyota Hilux was sold for RM70,000.

Office Equipment

An office equipment costing RM30,000 was brought into use in Gurun Kedah on 30 April 2016.

The assets were previously used for Puan Fatimah's partnership business in Thailand. The net

book value and the market value of the office equipment at the date of transfer were RM12,000