Question 2

Magnolia Sdn Bhd was incorporated on 1 January 2012 and closes its accounts on 31 December every year. The following assets were acquired by Magnolia Sdn Bhd:

1.Machinery

On 13 October 2019, a machine costing RM65,000 was brought into Malaysia for business use. It was originally used for business in China. The net book value and the market value of the machine were RM34,500 and RM33,000 respectively. The company incurred RM10,000 to prepare the site for installation purposes.

2.Delivery Van

On 25 April 2016, a second hand delivery van costing RM75,000 was bought on cash basis. The van was sold in July 2019 for RM30,000.

3.BMW Car

A BMW car was acquired under hire purchases for the use by the Finance Director in 2018 at a cost of RM180,000.

The details of the hire purchase are:

Deposit : RM40,000 paid on 20 August 2018

No of Installments : 60 monthly installments beginning September 2018

Usage : 70% for business use

REQUIRED:

Compute the Capital Allowances, Balancing Charges or Balancing Allowances (if any) for the above assets for all the relevant years of assessment up to year of assessment 2019.