QUESTION 5 Diamond Sdn. Bhd. was incorporated in the year 2016 with the principal activity is a manufacture of fiber optic. This product is promoted product which eligible to claim for a pioneer status or investment tax allowance under the Promotion of Investment Act 1986. The company has prepared the following information: Year ending 31 August 2016 RM'000 (900) 700 2017 RM000 1,400 800 2018 RM000 3,100 900 2019 RM'000 4,900 1,700 Adjusted income/(loss) Capital allowances Capital expenditure incurred: Land Factory building Plant and machinery 1,000 3,000 2,000 400 Required: (0) For all relevant years of assessment, compute the chargeable income and the amount to be credited to the exempt income account by Diamond Sdn. Bhd. claiming for: (a) investment tax allowance (ITA) of 60%. (8 marks) (b) pioneer status. (10 marks) () Based on your computation in (i) above, state (with reasons) whether you would advise Diamond Sdn. Bhd. to apply for pioneer status or investment tax allowance. (2 marks) [Total: 20 marks] QUESTION 5 Diamond Sdn. Bhd. was incorporated in the year 2016 with the principal activity is a manufacture of fiber optic. This product is promoted product which eligible to claim for a pioneer status or investment tax allowance under the Promotion of Investment Act 1986. The company has prepared the following information: Year ending 31 August 2016 RM'000 (900) 700 2017 RM000 1,400 800 2018 RM000 3,100 900 2019 RM'000 4,900 1,700 Adjusted income/(loss) Capital allowances Capital expenditure incurred: Land Factory building Plant and machinery 1,000 3,000 2,000 400 Required: (0) For all relevant years of assessment, compute the chargeable income and the amount to be credited to the exempt income account by Diamond Sdn. Bhd. claiming for: (a) investment tax allowance (ITA) of 60%. (8 marks) (b) pioneer status. (10 marks) () Based on your computation in (i) above, state (with reasons) whether you would advise Diamond Sdn. Bhd. to apply for pioneer status or investment tax allowance. (2 marks) [Total: 20 marks]