A. Jamal Textile Enterprise is a textile manufacturer operating in Selangor. The company was incorporated on 1June 2019 and closes its account annually on 31 December. All machinery purchased was imported from Taiwan and it was delivered on 1January2020, and the business commenced officially on 1February 2020. The following expenditure was incurred: (i) Purchased machinery that cost RM1,000,000 on 1June 2020 and paid deposit RM100,000 on the day of purchase, while the remaining RM900,000 was paid on 1November 2020. (ii) Purchased forklift on hire purchase term on 1January 2020. The total cost of the forklift is RM125,000, and Jamal Textile paid down payment of RM5,000. The total installment payment was RM48,000, excluding an interest amounting RM9,580. (iii) Purchased a new car (Proton X50) on 30December 2020 for the General Manager of the company costing RM120,000 . (iv) Purchased a computer with printer on 1April 2019 for RM5,500. This computer specification however was found to be incompetent for the task at hand after six(6) months of usage, so it was disposed of at RM4,800 on 1October 2020. The Inland Revenue Board Malaysia (IRBM) has accepted the reason for its disposal. Compute the capital allowances and balancing charge/allowance (if any)and residual expenditure for Jamal Textile Enterprise for the year of assessment2020.
A. Jamal Textile Enterprise is a textile manufacturer operating in Selangor. The company was incorporated on 1June 2019 and closes its account annually on 31 December. All machinery purchased was imported from Taiwan and it was delivered on 1January2020, and the business commenced officially on 1February 2020. The following expenditure was incurred:
(i) Purchased machinery that cost RM1,000,000 on 1June 2020 and paid deposit RM100,000 on the day of purchase, while the remaining RM900,000 was paid on 1November 2020.
(ii) Purchased forklift on hire purchase term on 1January 2020. The total cost of the forklift is RM125,000, and Jamal Textile paid down payment of RM5,000. The total installment payment was RM48,000, excluding an interest amounting RM9,580.
(iii) Purchased a new car (Proton X50) on 30December 2020 for the General Manager of the company costing RM120,000 .
(iv) Purchased a computer with printer on 1April 2019 for RM5,500. This computer specification however was found to be incompetent for the task at hand after six(6) months of usage, so it was disposed of at RM4,800 on 1October 2020. The Inland Revenue Board Malaysia (IRBM) has accepted the reason for its disposal.
Compute the capital allowances and balancing charge/allowance (if any)and residual expenditure for Jamal Textile Enterprise for the year of assessment2020.
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