Question $7$:

$AO0k-200k$

$=600k$

Kicap Maimun is a manufacturer in Jitra, Kedah since $2017.$ The business started with one factory which was purchased for RM$800,000$ including RM$200,000$ cost of land. The building $($factory$)$ was purchased in $2017$ and the production started in early $2018.$

Due to high demand of its products, Kicap Maimun decided to increase the production capacity and construct a new factory. The construction commenced in $2018$ and was completed in December $2019.$ The new factory was brought into use in January $2020.$ The following expenditures were incurred throughout the construction period:

$\backslash$table$[[$Expenditure$,$RM$],[$Feesefor changing the status of the land $,8,000],[$Legal charges related to loan application Legal fees for land acquisition $x,12,000],[$Lawyer$\text{'}$s fees for the building,$20,000],[$Architect$\text{'}$s fee for the design of the building,$25,000],[$Interest on loan for construction purposes,$30,000],[$Payment to local authority for approval of plan,$2,000],[$Cost of clearing land $>,19,000],[$Cost of cutting and leveling the land,$36,000],[$Piling and foundation,$14,000],[$Construction cost$,500,000],[$Wiring and electricity work,$80,000],[$Drainage and plumbing,$22,000],[$Water system and electrical works,$16,000],[$Construction of perimeter wall $($fencing$),44,000]]$

However, due to the Covid$-19$ pandemic, the business decided to cease the production works in the old purchased building in March $2020$ and sold the building to High Glove Bhd for a consideration of RM$950,000$ including RM$250,000$ cost of land.