TAXATION MALAYSIA - HELP ME URGENT IN TWO HOUR PLEASE

Rangup Sdn Bhd, a biscuit manufacturer, incurred the following expenditure during its financial year ended 30 September 2019 :

1) Cost of land in Kuala Lumpur amounting to RM300,000 for the construction of the buildings stated below.

2) Cost of constructing a building amounting to RM860,000. The building comprises a factory and an office. The construction cost of the office was RM112,000.

3) Cost of constructing a building used as a power station to supply electricity to the factory, amounting to RM20,000.

4) Cost of constructing an extension to the factory building to be used as a warehouse for the storage of finished goods, amounting to RM130,000.

5) Cost of levelling land for the installation of machinery, amounting to RM454,000. The machinery cost RM135,700.

6) Cost of constructing living accommodation for the factory workers amounting to RM80,000.

7) Cost of constructing a warehouse in Johore for the storage of finished products for distribution to the retailers in the region, amounting to RM105,000.

8) Expenditure incurred on the purchase of building as follows :

a. A factory in Penang, purchased on 21 February 2019 for RM166,000.

b. A childcare facility in Penang for its employees, purchased for RM210,000. All the above assets were in use for the business of Rangup Sdn Bhd as at 30 September 2019. Required :

a) Determine the amount of the qualifying expenditure for the purposes of industrial buildings allowance, together with the rates of initial allowance and/or annual allowance. (10 marks)

b) Explain your treatment of item 5) (4 marks)

c) State, giving brief explanations, the expenditure which does not qualify for industrial building allowance.