TAXATION

Question 3 Aqua Bhd., a plantation company incurred the following expenditures in the course of the palm oil for the year ending 31 December 2020. Cutting and levelling of forest trees Purchasing of seedling Fertilizers and insecticides Planting cost Fencing Road, bridges and drains Office building Cost of the land Legal fees and stamp duty on land acquisition Fruit sorting building and loading bay Accommodation for plantation workers Accommodation for administrative staff Total Expenditure RM 120,000 40,000 30,000 110,000 70,000 80,000 30,000 500,000 25,000 15,000 50,000 30.000 1,100,000 Required: (a) Identify the Qualifying and non-Qualifying Expenditure for Aqua Bhd., for Year Assessment 2020 (8.5 marks) (b) Calculate the Agriculture Allowance for Aqua Bhd. for YA 2020. (6.5 marks) (c) What is balancing charge and balancing allowance? (6 marks) (1) Give two circumstances that may give rise to balancing charge / allowance (4 marks) [Total: 25 marks)