Rajesh started an electrical manufacturing and trading business named Rajesh Electrical Manufacturing and Trading on 1 February 2019. The following were expenses incurred by the business for the year ending 31 December 2019.

1.A staff welfare expense of RM50,000 incurred for the construction of a child care centre.

2.A bad debt of RM4,500, which includes RM500 due to an irrecoverable trade debt written off and RM4,000 made to an employee on 1 March 2019, which is not recoverable at year end.

3.An entertainment expense of RM3,000 for a Christmas dinner treat held by Rajesh at his home for his business clients to thank them for their overwhelming support

for the business.

Required:

Evaluate (by indicating the amount) with reasons whether the above expenses are allowable or non-allowable deduction for the business in the year of assessment 2019.