QUESTION 1 2. WSB purchased new plant and machinery on hire purchase under the following terms. WENY Sdn Bhd. (WSB) carries on the business of manufacturing fertilizer and prepares accounts to 31.3 annually. For the financial year ended 28.2.2017, WSB incurred the following expenditure: RM Cost of plant RM000 Deposit Principal sum Hire-purchase interest Total sum payable 800,000 (320,000) 480,000 100,000 580,000 3 May 2016 Cost of plant 800 3 May 2016 Fencing 40 3 May 2016 Electrical wiring and fittings 55 3 May 2016 Architect's fee 52 3. 3 May 2016 Clearing of land 31 3 May 2016 Construction cost of building 305 The total sum of RM580,000 is payable by 60 equal monthly instalments commencing on 1.12.2016 A power generator costing RM120,000 was installed in July 2016 within the factory compound. A site was prepared for the installation of the generator and the cost of preparing the site was RM9,000. WSB paid half of the total cost while the other half was bome by its sister company whose office is located adjacent to WSB's factory compound WSB purchased a Toyota car for one of its director in June 2014. The car, which cost RM50,000, was traded in for a value of RM40.000 in December 2016 for a BMW car which cost RM290,000. The BMW car was involved in an accident in February 2017 and was total wrecked. WSB received an insurance compensation of RM220.000. 3 May 2016 Public road 75 4. 3 May 2016 Drainage and irrigation 60 3 3 Dec 2016 Canteen 120 3 Dec 2016 Cost of land 70 REQUIRED The construction of WSB's new building commenced on 1 April 2016 and completed on 27 January 2017. Calculate the industrial building allowances for year assessment 2017. Additional notes: Factory / Public Warehouse road Canteen Plant and machinery (General) Plant and machinery (Heavy) Motor vehicle Staff quarters 1. Initial allowance 10% 10% 20% 20% 2096 0% In December 2016, WSB purchased a second-hand residential house costing RM560,000, including RM70,000 being the cost of land. The house is used as living quarters for the factory production workers. Annual allowance 396 694 14% 20% 20% 10% QUESTION 1 2. WSB purchased new plant and machinery on hire purchase under the following terms. WENY Sdn Bhd. (WSB) carries on the business of manufacturing fertilizer and prepares accounts to 31.3 annually. For the financial year ended 28.2.2017, WSB incurred the following expenditure: RM Cost of plant RM000 Deposit Principal sum Hire-purchase interest Total sum payable 800,000 (320,000) 480,000 100,000 580,000 3 May 2016 Cost of plant 800 3 May 2016 Fencing 40 3 May 2016 Electrical wiring and fittings 55 3 May 2016 Architect's fee 52 3. 3 May 2016 Clearing of land 31 3 May 2016 Construction cost of building 305 The total sum of RM580,000 is payable by 60 equal monthly instalments commencing on 1.12.2016 A power generator costing RM120,000 was installed in July 2016 within the factory compound. A site was prepared for the installation of the generator and the cost of preparing the site was RM9,000. WSB paid half of the total cost while the other half was bome by its sister company whose office is located adjacent to WSB's factory compound WSB purchased a Toyota car for one of its director in June 2014. The car, which cost RM50,000, was traded in for a value of RM40.000 in December 2016 for a BMW car which cost RM290,000. The BMW car was involved in an accident in February 2017 and was total wrecked. WSB received an insurance compensation of RM220.000. 3 May 2016 Public road 75 4. 3 May 2016 Drainage and irrigation 60 3 3 Dec 2016 Canteen 120 3 Dec 2016 Cost of land 70 REQUIRED The construction of WSB's new building commenced on 1 April 2016 and completed on 27 January 2017. Calculate the industrial building allowances for year assessment 2017. Additional notes: Factory / Public Warehouse road Canteen Plant and machinery (General) Plant and machinery (Heavy) Motor vehicle Staff quarters 1. Initial allowance 10% 10% 20% 20% 2096 0% In December 2016, WSB purchased a second-hand residential house costing RM560,000, including RM70,000 being the cost of land. The house is used as living quarters for the factory production workers. Annual allowance 396 694 14% 20% 20% 10%