taxation

RM 7. Facai Sdn Bhd, a manufacturing company, incurred capital expenditure on the following assets in the year ended 30 September 2019: RM New factory Construction 235,000 Land cost 90,000 Design and plan fees for building 40,000 Legal fees & stamp duty (for purchase of land) 2,000 Total cost of new factory 367,000 Production machinery (non-heavy machinery) Office equipment New computer system New motor car 195,000 18,000 85,000 125,000 Three assets had been acquired in previous years by the company. Two of these assets were disposed of during the year ended 30 September 2019. The relevant details of the three assets are as follows: Cost Residual expenditure Disposal price RM RM RM Motor car (acquired second hand) 75,000 10,000 18,000 Office equipment 25,000 7,500 2,400 Lorry 150,000 60,000 Still in use Required: Compute the capital allowances, balancing allowance(s) and/or balancing charge(s) for FaCai Sdn Bhd for the year of assessment 2019. (30 marks) RM 7. Facai Sdn Bhd, a manufacturing company, incurred capital expenditure on the following assets in the year ended 30 September 2019: RM New factory Construction 235,000 Land cost 90,000 Design and plan fees for building 40,000 Legal fees & stamp duty (for purchase of land) 2,000 Total cost of new factory 367,000 Production machinery (non-heavy machinery) Office equipment New computer system New motor car 195,000 18,000 85,000 125,000 Three assets had been acquired in previous years by the company. Two of these assets were disposed of during the year ended 30 September 2019. The relevant details of the three assets are as follows: Cost Residual expenditure Disposal price RM RM RM Motor car (acquired second hand) 75,000 10,000 18,000 Office equipment 25,000 7,500 2,400 Lorry 150,000 60,000 Still in use Required: Compute the capital allowances, balancing allowance(s) and/or balancing charge(s) for FaCai Sdn Bhd for the year of assessment 2019. (30 marks)