QUESTION 2 (30 MARKS)

A.The following is the information regarding Maya Enterprise. Compute the amount of capital allowance, balancing allowance or balancing charge of the company for the relevant years of assessment until 2020. Support your answers with relevant computation.

Maya owns Maya Enterprise (ME) with her own capital contribution of RM2 million. ME incurred the following expenditures in relation to her garment business:

a.ME bought a new car worth RM156,000 for her manager and the details are as follows:

i.deposit of RM15,000 paid on 1 February 2018.

ii.instalment for each month of RM2,500 for six (6) years beginning 1March 2018.

iii.the car was sold in September 2019 for a price of RM90,000.

b.ME bought a heavy duty machinery in March 2019 for RM550,000 which includes cost of RM60,000 incurred for preparing the site to install the machine in the business premise.

c.ME purchased a general machinery amounting to RM65,000 in April 2018 but sold it to another company for RM80,000 in February 2019 with a motive of making gain.

d.In June 2019, ME paid RM1,950 each for the purchase of 11 units of air conditioners for business use.

(20 Marks)