Subject name is Taxation 2

Qualifying Building Expenditure (QBE) is capital expenditure incurred by a business entity on the cost of constructing an industrial building which includes the cost of construction, additions or rebuilding of a building, renovations and alteration, or purchase of a building. Ajinomoto Sdn Bhd is a manufacturing company and closes its accounts annually on 31 December. The company acquired a factory building for RM10,500,000 during the year of assessment 2020 In 2021, the company extended the factory building and incurred the following capital expenditure: Levelling of land Design fee for factory Construction cost for factory extension RM 100,000 180,000 120.000 400.000 Required: Determine the qualifying building expenditure and calculate the industrial building allowance for the years of assessment 2020 and 2021 for (a) The original factory building acquired in 2020; and (4 marks) (b) The extension made to the factory building in 2021. (6 marks) (10 marks)