QUESTION 2 Qualifying Building Expenditure (QBE) is capital expenditure incurred by a person on the cost of constructing the original building which would include cost of constructing additions or rebuilding of that building, renovations and alteration, or purchase of a building. Scenario: EcoWorld Sdn Bhd is a manufacturing company and closes its accounts annually on 31 December. The company acquired a factory building for RM1,500,000 during the year of assessment 2010. In 2011, the company extended the factory building and incurred the following capital expenditure: RM Levelling of land 10,000 Design fee for factory 18,000 Construction cost for factory extension 102,000 130,000 Required: Determine the qualifying building expenditure and calculate the industrial building allowance for the years ofassessment 2010 and 2011 for (a) The original factory building acquired in 2010; and (4 marks) (b) The extension made to the factory building in 2011. (6 marks) (10 marks) QUESTION 2 Qualifying Building Expenditure (QBE) is capital expenditure incurred by a person on the cost of constructing the original building which would include cost of constructing additions or rebuilding of that building, renovations and alteration, or purchase of a building. Scenario: EcoWorld Sdn Bhd is a manufacturing company and closes its accounts annually on 31 December. The company acquired a factory building for RM1,500,000 during the year of assessment 2010. In 2011, the company extended the factory building and incurred the following capital expenditure: RM Levelling of land 10,000 Design fee for factory 18,000 Construction cost for factory extension 102,000 130,000 Required: Determine the qualifying building expenditure and calculate the industrial building allowance for the years ofassessment 2010 and 2011 for (a) The original factory building acquired in 2010; and (4 marks) (b) The extension made to the factory building in 2011. (6 marks) (10 marks)