Spring Pte Ltd (SPL), a Singapore-incorporated company, is 100% owned by Timothy Mu. It is in the business of manufacturing noodles and related products. During the year ended 31 December 2021, it incurred capital expenditures in the acquisition of the following equipment/furniture which were capitalized to the Balance Sheet: A fully automated noodle-making machine costing $390,000 bought under a finance lease arrangement as follows: o Cash down payment on 6 March 2021 of $54,000; and o Monthly capital repayments of $14,000, commencing April 2021. Multi-purpose imaging machine costing $69,000. The purchase was made on 5 December 2021 and a cash down payment of $12,000 was made on the same day; the balance was to be paid by 5 January 2022 under the 1- month credit period given by the supplier. The machine qualifies for accelerated capital allowances claim at 100%. Motor car costing $45,000 for use by its manager working in SPLs trade office in Indonesia. The trade office serves as a liaison office for SPL with its potential and existing customers in Indonesia. Additional tables and chairs costing $24,000 for the corporate office at Northpoint City at Yishun (each item costs $4,800). See information provided further on as well. Progress payment of $135,000 on non-structural renovation works at the corporate office. The renovation works comprised of fixed partition and flooring works. SPL incurred $478,000 on acquiring the legal and economic ownership of an Intellectual Property Right (IPR). The amount includes registration fees of $58,000 for the IPR. SPL has opted for write-down over 5 years. SPL has received approval for a government grant to cover the IPR registration fees; the grant was received on 15 January 2022. Capital allowances on all plant and machinery acquired in prior years and which are still in use have been fully claimed by YA 2021 apart from the following that were acquired in financial year 2019: 9 tables costing $35,100 for the corporate office (each table costs $3,900) purchased in financial year 2019. There were no other plant and machinery bought during 2019 that costs not more than $5,000. In financial year 2020, another 10 tables costing $3,000 each were acquired and all capital allowances for these 10 tables were claimed in YA 2021. Purchase of new factory building costing $1,300,000 (the company was operating out of rented premises previously). Non-structural renovations to factory building costing $255,900 comprising electrical reconfiguration, fixed partition and flooring works, etc. During the year ended 31 December 2021, the company also wrote off the following equipment and furniture: An office equipment taken over from a related company in year ended 31 December 2019 at the tax written down value of $5,000 with remaining useful life of 1 year (Section 24 was elected). The machine was sold by SPL for $8,000. A secondhand machine was acquired in financial year 2018 at the cost $20,000. It was refurbished and upgraded at a cost of $6,000 in year 2019. The machine was sold by SPL to an overseas buyer for $28,000 during the financial year 2021. Accelerated allowance over 3 years was claimed on this machine. SPL has adjusted profits of $522,000 for YA 2022 based on tax adjustments arising from items charged/expensed off to the Profit and Loss Account for the year ended 31 December 2021 but not including any special deductions allowed under Section 14. The company has not carried out any Section 14Q (renumbered to Section 14N) compliant renovation works up till 31 December 2019 and neither has it acquired any other IPR previously. SPL made a cash donation of $15,000 to an institution of public character during the year. It also derived a net rental income of $35,000 from a residential investment property held in Singapore.

Required: (a) Calculate the assessable income for SPL for YA 2022. All items of expenditure given in the question are to be accounted for in order to distinguish between qualifying and non-qualifying expenditure for capital allowances claim. Where an expenditure is not deductible or does not qualify for capital allowances, please insert 0 against the expenditure. You are to show all workings clearly. The company has always claimed maximum accelerated allowances available.(Key answer: adjusted profit after capital allowance = 76,250 / assessable income = 73,750) (20 marks)