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You are provided with the following scenarios: i) ii) iii) Business A acquired an old building to be used in the business. Due to its
You are provided with the following scenarios: i) ii) iii) Business A acquired an old building to be used in the business. Due to its dilapidated condition, the building must be repaired first before it can be used. The business incurred RM280,000 to repair the building. Due to the recent economic downturn, the owner of Business B decided to close down the business. RM90,000 were paid to employees as compensation for loss of employment. Business Chired a new staff to be in charge of the cash register at the counter. After working for three days, the new staff disappeared together with all the money in the cash register, amounted to RM6,300. The police managed to catch the new staff, but the lost cash was never recovered. Business D is operating a hotel. It is a policy of the hotel that towels and linens are to be used only for 18 months. In 2019, Business Dincurred RM12,600 to purchase towels and linens that are due for replacement. iv) Required: For each of the scenario given above, discuss whether the expenses incurred would be deductible or not deductible expenditure in arriving at the adjusted business income
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