Monika Sdn Bhd manufacture noodles (accounts ending on 31 December) purchased a factory building on 15.1.2017 for RM950,000. The company could not submit the cost of land and building separately since both of the costs are not specified in the sale and purchase agreement. The company wanted to claim IBA on the factory building of RM978,500 which includes legal fees relating to the cost of building and land totalling RM28,500 commencing from YA 2017. The purchase price that can be taken into account as QBE is the cost of building and legal fees relating to the cost of building only, the cost of land and legal fees relating to the cost of land is excluded. The professional valuer had determined the costs of land and building as follows: Cost of land RM500,000 Cost of building RM450,000 Purchase price RM950,000 Required: Calculate the QBE for the year of assessment.
Monika Sdn Bhd manufacture noodles (accounts ending on 31 December) purchased a factory building on 15.1.2017 for RM950,000. The company could not submit the cost of land and building separately since both of the costs are not specified in the sale and purchase agreement. The company wanted to claim IBA on the factory building of RM978,500 which includes legal fees relating to the cost of building and land totalling RM28,500 commencing from YA 2017.
The purchase price that can be taken into account as QBE is the cost of building and legal fees relating to the cost of building only, the cost of land and legal fees relating to the cost of land is excluded. The professional valuer had determined the costs of land and building as follows:
Cost of land RM500,000
Cost of building RM450,000
Purchase price RM950,000
Required: Calculate the QBE for the year of assessment.
Question 3
Bionik Adli Sdn Bhd manufacture high plastic material has incurred capital expenditure for the installation of a new vacuum emulsifier machine in the factory. The function of this machine is to produce a product in liquid form. The expenditure incurred is as follows:
Cost of the machine RM40,000
Cost of preparing site for installation RM121,000
Required: Calculate the QBE for the year of assessment
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