(b) ABC Sdn Bhd constructed a factory at the cost of RM1,900,000 of which RM400,000 was for the land. The building was completed on 1.1.2018 and 1/8 of the building used as an office. On 1.2.2021, the building was sold to CIM Sdn Bhd for RM2,500,000 including RM800,000 for the land. CIM Sdn Bhd used the whole building as a factory. CIM Sdn Bhd constructed an extension to the building costing RM220,000 on 2.5.2022. The extension was completed and brought into use as a warehouse for the storage of raw materials for manufacturing. Both companies ended their accounts on 31 December. Required: Compute the Industrial Building Allowance and Balancing Charge (if any) for both companies for all relevant years of assessment up to the year of assessment 2022.
(b) ABC Sdn Bhd constructed a factory at the cost of RM1,900,000 of which RM400,000 was for the land. The building was completed on 1.1.2018 and 1/8 of the building used as an office. On 1.2.2021, the building was sold to CIM Sdn Bhd for RM2,500,000 including RM800,000 for the land. CIM Sdn Bhd used the whole building as a factory. CIM Sdn Bhd constructed an extension to the building costing RM220,000 on 2.5.2022. The extension was completed and brought into use as a warehouse for the storage of raw materials for manufacturing. Both companies ended their accounts on 31 December. Required: Compute the Industrial Building Allowance and Balancing Charge (if any) for both companies for all relevant years of assessment up to the year of assessment 2022.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Dhapa
Transcribed Image Text:(b)ABC Sdn Bhd constructed a factory at the cost of RM1,900,000 of which RM400,000 was
for the land. The building was completed on 1.1.2018 and 1/8 of the building used as an
office. On 1.2.2021, the building was sold to CIM Sdn Bhd for RM2,500,000 including
RM800,000 for the land.
CIM Sdn Bhd used the whole building as a factory. CIM Sdn Bhd constructed an extension
to the building costing RM220,000 on 2.5.2022. The extension was completed and brought
into use as a warehouse for the storage of raw materials for manufacturing. Both
companies ended their accounts on 31 December.
Required:
Compute the Industrial Building Allowance and Balancing Charge (if any) for both
companies for all relevant years of assessment up to the year of assessment 2022.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education