Bubu Sdn Bhd, a manufacturing company in Selangoor. The factory building of the company still using zinc roofing. Due to heavy exposure to sunlight, some of the zinc sheets had shrunk and caused leaking.

Therefore, the management is considering whether

i.

to replace only the shrunken zinc sheets; or

ii. to replace the whole roof with tiles

The management is well aware that the cost of the zinc sheets is much cheaper as compared to tiles. However, tiles are regarded as anewer and better construction material compared to zinc for this scenario.

Required: 

Discuss the deductibility of the expenditure in both options in ascertaining the adjusted income.