What the hell is this?

Notes

1. Sales include an unrealised gain from foreign exchange in respect of the sale of products amounting to RM64,000.

2. Cost of goods sold includes the following costs in respect of warranty claims for faulty products:
   1. A provision in respect of claims not yet settled RM43,000
   2. A payment to settle a claim RM13,000

3. Salaries, wages and EPF (Employees Provident Fund) includes the sum of RM440,000 paid to a manager to secure his early retirement on account of misconduct.

4. Legal expenses comprise:

Legal cost to claim compensation on trading goods lost in transit	RM10,000
Legal expenses to obtain a new business licence	RM12,000

5. Repairs and maintenance expenses consist of:

i) Replacement of corrugated iron roof with tile roof for office building	RM37,000
ii) Replacement of broken glass windows	RM3,000
iii)Repainting of offices and showroom	RM11,000

6. Annual general meeting (AGM) expenses were in respect of postage for notices of the general meeting and the cost of printing the directors report and accounts.

7. The insurance proceeds were paid to the company under a whole life policy (with investment elements and redeemable cash values upon request) on the accidental death of the companys chief executive officer (non-shareholder).

8. The following donations were made:
   1. to an approved institution in cash RM847,000
   2. to the state government RM103,000
   3. in the form of cash gift handed to senior citizens

staying in an old folks home approved by the authority RM 10,000

9. The export credit insurance based on takaful concept paid to a local insurance company approved by the Minister of Finance.

10. The sum of RM176,000 was incurred in providing library facilities which are accessible to the public.

11. Great-Motor is eligible to claim capital allowance of RM20,000.

Required

Prepare the computation of the chargeable income of Great-Motor Sdn Bhd for the year of assessment of 2019. All workings must be clearly stated.

Your computation should start with the profit before taxation figure and follow the description used in the notes to the companys income statement. Indicate nil in the appropriate column for any item that does not require adjustment in your tax computation.

Question 1 Great-Motor Sdn Bhd manufactures car accessories for both the local and export market. The company's profit and loss statement for the year ended 30 September 2019 shows the following: Note RM'000 RM'000 Sales 1 49,690 Cost of goods sold 2. (34,304) Gross profit 15,386 Less: Salaries, wages and EPF 3 6,323 Legal expenses 4 22 Repairs and maintenance 5 51 Depreciation 1,581 Annual general meeting expenses 6 30 Practical training for staff 70 Donations 7 960 Insurance proceeds 8 (1,000) Export credit insurance premiums 9 27 Library facilities 10 176 Penalty for under-payment of income tax and late submission of tax return for YA 2017 24 Hire purchase interest for machine used in factory 5 (8,269) Profit before taxation 7,117 Question 1 Great-Motor Sdn Bhd manufactures car accessories for both the local and export market. The company's profit and loss statement for the year ended 30 September 2019 shows the following: Note RM'000 RM'000 Sales 1 49,690 Cost of goods sold 2. (34,304) Gross profit 15,386 Less: Salaries, wages and EPF 3 6,323 Legal expenses 4 22 Repairs and maintenance 5 51 Depreciation 1,581 Annual general meeting expenses 6 30 Practical training for staff 70 Donations 7 960 Insurance proceeds 8 (1,000) Export credit insurance premiums 9 27 Library facilities 10 176 Penalty for under-payment of income tax and late submission of tax return for YA 2017 24 Hire purchase interest for machine used in factory 5 (8,269) Profit before taxation 7,117