Assignment 4.

6
Qualifying Buildeing Expenditure for year assessment 2003
Year Ended 31.12.2003
Cost of site / land
Construction work
Architect Fee
Cost Of Demoslishing an old factory
Legal fees
Year ended 31.12.2003
Construction work
Architect Fee
Year ended 30.6.2003
Construction work
Architect Fee
QBE

900,000
30,000
10,000
420,000
6,000
940,000
15,000
2,321,000

Syarikat Maju Sdn.Bhd

IBA y/a 2003

IBA y/a 2004

IBA y/a 2005
IBA y/a 2006

QBE
(-) IA (185600 X 10%)
(-) AA / NA (3%)
Residual Balance
(-) AA / NA (3%)
Residual Balance
(-) AA / NA (3%)
Residual Balance
(-) AA / NA (3%)
Residual Balance

IBA y/a 2007

Sold
Balancing charge

Syarikat Kaya Sdn.Bhd

IBA y/a 2007
QBE
(-) IA (390000 X 10%)
(-) AA (390000 X 3%)
Residual Balance
IBA y/a 2008
(-) AA (3%)
Residual Balance
IBA y/a 2009
(-) AA (3%)
Residual Balance
IBA y/a 2010
(-) AA (3%)
Residual Balance

Building
80%
1,856,800
-185,680
-55,704
1,615,416
-55,704
1,559,712
-55,704
1,504,008
-55,704
1,448,304
408,496
1,856,800
3,900,000
2,043,200

3,900,000
-390,000
-117,000
3,393,000
-117,000
3,276,000
-117,000
3,159,000
-117,000
3,042,000

Office
20%
464,200
-13,926
450,274
-13,926
436,348
-13,926
422,422
-13,926
408,496

Assignment 4.8
Qualifying Buildeing Expenditure for year assessment 2007
Cost of land
Demolition of an existing factory building
Building plans and related fees
85,000
Constuction cost
3,044,000
Internal roads and parking
175,000
Legal fees
80,000
Piping and cabling
206,000
3,590,000

Rimba Sdn. Bhd - Built

IBA y/a 2007

IBA y/a 2008

IBA y/a 2009
IBA y/a 2010

QBE (3,590,000)
(-) IA (10%)
(-) AA/NA (3%)
Residual Balance
(-) AA/NA (3%)
Residual Balance
(-) AA/NA (3%)
Residual Balance
(-) AA/NA (3%)
Residual Balance

Rimba Sdn. Bhd - Purchase

IBA y/a 2008
QBE (980000)
(-) IA (10%)
(-)AA (3%)
Residual Balance
IBA y/a 2009
(-) AA (3%)
Residual Balance
IBA y/a 2010
(-)AA (3%)

G.rooms
Store
72%
15%
2,584,800 538,500
-258,480
-53,850
-77,544
-16,155
2,248,776 468,495
-77,544
-16,155
2,171,232 452,340
-77,544
-16,155
2,093,688 436,185
-77,544
-16,155
2,016,144 420,030

980,000
-98,000
-29,400
852,600
-29,400
823,200
-29,400
793,800

Office
13%
466,700
-14,001
452,699
-14,001
438,698
-14,001
424,697
-14,001
410,696

Assignment 4.5
Answer (i)
Qualifying Buildeing Expenditure for year assessment 2007
Cost of land
Legal fee for land acquisition
Stamp duty
Architect's fee
30,000
Clearing of land
15,000
Construction cost of building
500,000
Drainage and irrigation
40,000
Fencing
35,000
Electrical wiring and fitting
25,000
Electrical cabling and installation of plant and machinery
Road and car park
60,000
Store for storage of raw material
55,000
Warehouse for storage of finished products
Staff canteen within the factory compound
QBE
760,000

IBA y/a 2010

IBA y/a 2010

Computation of IBA
QBE
(-) IA (10%)
(-) AA (3%)
Residual Balance
Staff Canteen
QBE
(-) IA (10%)
Residual Balance

760,000
76,000
22,800
661,200

65,000
6,500
58,500

Answer (ii)

IBA y/a 2010

Residual House
QBE (350, 000 -50, 000)
Initial Allowance
Annual Allowance (10%)
Residual Balance

300,000
30,000
270,000

Answer (iii)
Hire Purchase = Deposite+ Installment
120000 + (614400 x 48)
120,000 + 614,400
RM734,400
Interest = Hire Purchase - Cash
734,400-600,000
RM134,400
Interest
month

134,400
48
RM2,800

Qualified Installment

Deposite
Installment (10,000x 3)
(-) IA (20 %)
(-) AA (14%)
Residual Balance

12,800-2,800 = RM 10,000

120,000
30,000
150,000
30,000
21,000
99,000