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QUESTION 2 Hutan Sdn Bhd . ( financial year end: 3 1 Dec ) is a company engaged in the business of timber extraction from

QUESTION 2
Hutan Sdn Bhd.(financial year end: 31 Dec) is a company engaged in the business of timber extraction from a forest in Malaysia. It was in business for several years. For the year ended 31 December 2021 it incurred the following expenditure in respect of an area of forest from which it was granted a license to extract timber:
\table[[Date,Expenditure,RM],[,,],[124?2021,Construction of road,50,000],[146?2021,Construction of administrative building,60,000],[168?2021,Construction of labor quarters,80,000]]
On 1 September 2023, Hutan Sdn Bhd ceased and disposed the timber extraction business permanently for RM120,000.
Required:
(i) Compute the forest allowance and charges due to Hutan Sdn Bhd. for the relevant year of assessment.
(ii) Assuming the company made an election under the provision to Para 32(1) of Schedule 3 of the Income Tax Act 1967(as amended), what is the forest charges for the relevant years of assessment?
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