QUESTION 1 (CLO 3) When a company, a sole proprietor or a partnership commences a business, capital is needed. This capital provides the structure for the business to operate. It will also provide plants and machinery, furniture and fittings, and for a manufacturing process, the capital is used to purchase heavy machinery, and other equipment. The capital may come from the savings of the owners of the business, or it may be borrowed. Mechanism has been put in place that. capital is not taxed. Capital allowance has been put in place to replace depreciation which is a form of provision which is not allowed for deductions in tax computation. Research and read from various sources pertaining to capital allowances in Malaysian taxation which have been put in place in the Income Tax Act 1967. You must include in your discussion the followings: 1. The provision under Schedule 3 of the Act; 2. Plant; 3. Qualifying plant expenditure, that is expenditure qualifies for capital allowance; 4. Initial allowance; 5. Annual allowance; 6. Residual expenditure; 7. Basis period for capital allowance. You may also use example(s) to enhance your discussion. (40 marks)