Compute the industrial building allowances and balancing charges (if any) for both companies for all the relevant years of assessment up to the year of assessment 2021
Maju Bhd constructed a factory at a cost of RM2,800,000 of which RM1,200,000 was for the cost of the land. The building was completed on 1 November 2015 and one eleventh (1/11) of the building was used as an office.
On 1 February 2020, the building was sold to Indera Bhd for RM3,750,000 (including RM1,400,000 for the land). Indera Bhd uses the whole building as a factory. An extension to the building costing RM140,000 was constructed by Indera Bhd and completed on 2 May 2020. It was used as a warehouse for the storage of raw materials for its manufacturing business. Both companies close their accounts on 31 March annually
required :
Compute the industrial building allowances and balancing charges (if any) for both companies for all the relevant years of assessment up to the year of assessment 2021
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