CHAPTER 5 RELIEF FOR CAPITAL EXPENDITURE PLANT AND MACHINERY

CHAPTER 5: RELIEF FOR CAPITAL
EXPENDITURE : PLANT AND
MACHINERY

ROZANA BINTI CHE BIDI COMPILATION OF MALAYSIAN
SUHAILI BINTI YUSOP TAXATION – SMART REVISION MODULE

CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT
AND MACHINERY

INTRODUCTION

A person who is involves in a business activity would normally use assets in the course
of producing business income. Accountants recognize depreciation of the assets due
to usage, wear and tear.

Depreciation is not recognizing as tax-deductible expenditure because it really
represents the writing off a portion of the capital cost of asset over time. The tax payer
is grant a capital allowance on qualifying expenditure incurred on assets such as motor
vehicle, plant and machinery and fixture and fitting for determining the taxable income
of business.

Capital allowance is only given to business activity. Is given as deduction from
business income in place of depreciation expenses incurred in purchase of business .
The person who has the right to claim capital allowance is the person who has
expended on the purchase or acquisition of the said asset. Examples of assets that
are used in business are motor vehicles, machines, office equipment’s, furniture,
computers, and etc. assets. Rates of capital allowance are determined according to
the types of assets

The following conditions for must be fulfilling to claiming capital allowance:

i. Operating a business;
ii. Purchase of business assets;
iii. Assets are being used in the business;
iv. Owner of the assets.

PLANT AND MACHINERY FOR CAPITAL ALLOWANCES PURPOSES

Definition the word ‘plant’:

“whatever apparatus used by a businessman for carrying on his business, excluding
his stocks in trade which he buys or makes for sale; but include all goods and chattels,
fixed or moveable, lived or dead, which he keeps for permanent employment in his
business”.(Yarmouth v France (1887) 19 QBE 647).

Schedule 3 of ITA 1967 states that any capital expenditure incurred on the provision
of machinery or plant for the purpose of a business shall be qualified as qualifying
expenditure on plant and machinery (QPE). This includes purchase price of the plant
and machinery (cost of assets used in a business), other incidental cost such as freight

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

charges, custom duty and installation expenses of plant and machinery. Expenditure
on fishponds, animal pens, cages and other structures used for agricultural.

Qualifying for hire purchase assets is based on the amount of capital repayment made
during that basis period.

Exercise 1:

Salsa Sdn. Bhd. purchased a machine for the use of production of goods. The cost of
purchase is RM 75,000. Salsa Sdn. Bhd. also incurred RM 4,750 to install the machine
at its factory. Calculate the qualifying expenditure for the plant and machinery.

QUALIFYING PLANT EXPENDITURE UNDER PARAGRAPH 2, SCH. 3 ITA 1967

Qualifying plant expenditure (QPE) is capital expenditure incurred on the provision of
machinery or plant used for the purposes of a business. Its includes, among others:

i. Expenditure incurred on the alteration of an existing building for the purpose of
installing that machinery or plant and other expenditure incurred incidentally to
the installation

ii. Expenditure incurred on preparing, cutting, tunneling or levelling land in order
to prepare a site of installation of that machinery or plant, if the expenditure
exceeds 10% of the aggregate of the costs of installation and cost of the plant,
such expenditure will not qualify as QPE.

PLANT AND MACHINERY UNDER “10% RULE” (PARAGRAPH 2(B) OF
SCHEDULE 3)

Expenditure incurred in preparing, cutting, tunneling or leveling land in order to prepare
the site for the installation of that plant and machinery also qualify as capital
expenditure. However, the cost of preparing the site for installation shall not exceed
10% of the aggregate cost of the plant and machinery and cost of preparing the site.
If such expenditure exceeds 10% of the aggregate of the costs of installation and cost
of the plant, such expenditure will not qualify as QPE.

Example 1:

Mummy Sdn. Bhd. purchased a machine costing RM 205,000 and the company
incurred RM 15,000 to prepare the site for the installation of the machinery. Calculate
the qualifying expenditure for the plant and machinery.

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Solution:

Cost of machine RM 205,000

Cost of preparing the site RM 15,000

Aggregate cost RM 220,000

10% x RM 220,000 = RM 22,000.

The cost of preparing the site is less than 10% of the aggregate cost, therefore the
cost of preparing the site qualifies as expenditure incurred on plant and machinery.
The qualifying plant expenditure is RM 220,000.

Exercise 2:

Zaman Sdn. Bhd. purchased a machine costing RM 150,000 and the company
incurred RM 35,000 to prepare the site for the installation of the machinery. Calculate
the qualifying expenditure for the plant and machinery.

PLANT AND MACHINERY UNDER SCHEDULE 3, PARAGRAPH 2A AND
PARAGRAPH 2C, SCH. 3, ITA 1967

Where the plant and machinery were bought for non-business purposes but
subsequently brought into business use, the qualifying expenditure is the market value
of plant and machinery at the time of transfer.

Where the plant and machinery were use in business outside Malaysia and brought
into use in Malaysia, the qualifying expenditure is the lower of net book value or market
price.

MOTOR VEHICLE NOT LICENSED FOR COMMERCIAL TRANSPORTATION
(PARAGRAPH 2(2) OF SCHEDULE 3)

The qualifying expenditure (QE) incurred on or after the first day of the basis period
for the YA 1991 shall be limited to RM50, 000. Effective from 28 October, 2000, the
restriction on QE for motor vehicles not licensed for commercial transportation has
been increased to RM100, 000.

In order to claim for capital allowances on this restriction of RM100, 000, the motor
vehicles must be new when purchased and the cost of purchase does not exceed
RM150, 000. If these conditions are not complied with, the qualifying expenditure
continues to be restricted to RM 50,000.

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

However, motor vehicles licensed or permitted by the appropriate authority for
commercial transport of goods and passengers are not subject to this limitation

Exercise 3:

On 30 June 2020, Morning Glory Sdn. Bhd. bought two new cars, Honda and Toyota
for the use of its manager. The cost of the cars is RM 175,000 and RM 110,000
respectively. Both cars are not licensed for commercial transportation.

Determine the qualifying expenditure of the cars.

TYPES OF CAPITAL ALLOWANCES

a) Initial Allowances

The Initial allowance is given for the first basis year for the year of assessment in
which the qualifying expenditure was incurred. The applicable rate is 20% on
qualifying expenditure. However, under statutory order, certain business can claim
higher initial allowance. The following conditions must be fulfilled by a person who
claims for initial allowance:

i. The person claiming for initial allowance must be the owner who incurred
the qualifying expenditure.

ii. The plant and machinery must be in used in business.
iii. The plant and machinery must still be used at the end of the accounting

period.

b) Annual Allowance

The annual allowance commences in the basis year for the year of assessment in
which the qualifying capital expenditure is incurred and will continue to be given in
the following and subsequent years of assessment until the qualifying expenditure
is fully written off or when the assets is sold. The conditions for giving annual
allowance are similar to the conditions stated for the initial allowance.

The rate for initial allowance and annual allowance are as follows:

Type Of Asset Initial Allowance Annual
Heavy machinery 20 % Allowance
Motor vehicle 20 %
Plant and machinery 20 % 20 %

20 %
14 %

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Computer and ICT equipment 20 % 20 %

Others 20 % 10 %
Notes:

 Heavy machinery - Bulldozers, cranes, ditchers, excavators, graders, loaders,

rippers, rollers, rooters, scrappers, shovels, tractors, vibrator wagons and so

on.
 Motor vehicles - All types of motorized vehicles such as motorcycles,

aeroplanes, ships and so forth.
 Plant and machinery - General plant and machinery not included under heavy

machinery such as air conditioners, compressors, lifts, laboratory and medical

equipment, ovens and so forth.
 Others - Office equipment, furniture and fittings, etc.

From year of assessment 2006, capital allowance for small value asset would be
given a one of 100% allowance for each asset of value not exceeding RM 1,300
each. The total value of such assets should not exceed RM 13,000 in the relevant
year. From year of assessment 2009, small and medium enterprises are not
subject to that maximum limit.

Example 2: (Plant and Machinery Purchased by Cash)

Kitty Enterprise ends its accounting year on 31 December every year. Kitty Enterprise
purchased a machine on 16 June 2018 costing RM 50,000 for the use of its business.
The annual rate for the photocopy machine is 14%.

Compute the capital allowances for years of assessment 2015 till 2020.

Solution:

RM

YA 2018 Qualifying expenditure 50,000

Initial allowance (20% × RM 50,000) (10,000)

Annual allowance (14% × RM 50,000) (7,000)

Residual expenditure 33,000

YA 2019 Annual allowance (14% × RM 50,000) (7,000)

Residual expenditure 26,000

YA 2020 Annual allowance (14% × RM 50,000) (7,000)

Residual expenditure 19,000

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

Notional Allowance

When a particular asset is not in use due to various reasons, a business operator is
not allowed to claim annual allowance for that particular asset. Rate of notional
allowance is same as annual allowance. Notional allowance must be computed in
following condition:

i. If annual allowance is not claim by the owner;
ii. If an asset which used in business before becoming disused (not include

temporarily disuse), than used back in business.

DUAL USAGE

Where qualified expenditure has been incurred by a person in relation to an asset
used partly for the purpose of a business, and partly for non-business purpose, the
capital allowances claimed shall be apportioned for the purpose of the business. In
other words, the portion for non-business use is not allowed for capital allowances.

Exercise 4

On 18 July 2018, Thomas Sdn. Bhd. purchased a motor vehicle costing RM 65,000
for the use of its manager. The motor vehicle is not licensed for commercial
transportation. It was agreed that 2/5 of the car usage is meant for private purposes.
Thomas Sdn. Bhd. closes its accounting year on 30 September each year. Compute
the capital allowances available for Thomas Sdn. Bhd. Up to year of assessment 2020.

PLANT AND MACHINERY PURCHASED UNDER HIRE PURCHASED

The qualified expenditure for the basis period for a year of assessment shall be taken
from the capital portion of any installment payment made by him. In the case of motor
vehicles not licensed for commercial transportation, the restriction on qualified
expenditure still applies.

Capital Portion = Cash Price – Deposit
No. of installments

Example 3

On 1 May 2017, En. Suman purchased a machine on hire purchased for the use of his
business. The following are information pertaining to the machine. The annual rate for

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

machine is 14%.En. Suman’s business accounting year ends on 31 December each
year.

Cash price RM 100,000
Hire purchased price RM 120,000
Deposit paid
Number of installments RM 30,000
35 times

Payment for installment began on 1 June 2017. Compute the capital allowances
available to En. Suman for all the relevant years of assessment till year of assessment
2020.

Solution:

Capital portion = 100,000  30,000
35

= RM 2,000

RM

YA 2017 Deposit 30,000

Installment (2,000 × 7) 14,000

Qualifying expenditure 44,000

Initial allowance (20% × 44,000) (8,800)

Annual allowance (14% × 44,000) (6,160)

Residual expenditure 29,040

YA 2018 Installment (2,000 × 12) 24,000

53,040

Initial allowance (20% × 24,000) (4,800)

Annual allowance (14% × (44,000 + 24,000)) (9,520)

Residual expenditure 38,720

YA 2019 Installment (2,000 × 12) 24,000

62,720

Initial allowance (20% × 24,000) (4,800)

Annual allowance (14% × (44,000 + 24,000 + 24,000)) (12,880)

Residual expenditure 45,040

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

YA 2020 Installment (2,000 × 4) 8,000
53,040
Initial allowance (20% × 8,000) (1,600)
Annual allowance (14% × 100,000) (14,000)
Residual expenditure 37,440

Exercise 5

Kenobi Sdn. Bhd. ends its accounting year on 31 March each year. In February,
2018, Kenobi Sdn. Bhd. purchased two cars on hire purchase for business use in
Shah Alam. Both cars were not licensed for commercial transportation of goods or
passengers. Annual allowance for a motor vehicle is 20%. Details related to the
purchase of the two cars are:

Perodua Honda

(RM) (RM)

Cash price 80,400 140,000

Initial payment paid on February, 2018 38,400

Initial payment paid on August, 2018 30,000

Monthly installment for 24 months, commencing in March 2,400
2018

Monthly installment for 25 months, commencing in Sept 4,800
2018

Determine capital allowances for Kenobi Sdn. Bhd. for each years of assessment
until the year of assessment 2020.

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

DISPOSAL OF PLANT AND MACHINERY

Where a person disposes of the plant and machinery, balancing allowances or
balancing charges may arise. A disposal can come about under the following
circumstances:

a) When a plant and machinery is disposed of;
b) The business permanently ceases but plant and machinery continues to belong

to the business;
c) Plant and machinery permanently ceases to be used in the business.

Balancing allowance arises when the residual expenditure of the plant and machinery
is greater than the disposal value. Balancing charge occur when the residual
expenditure of the plant and machinery is lower than the disposal value. Balancing
charges shall not exceed the total capital allowances previously given.

Example 4

On 5 January 2017, Mahsuri Furniture Sdn. Bhd. purchase a motor vehicle costing
RM 160,000 and it was not licensed for commercial transport. Accounting year ended
on 31 December each year. It sold the motor vehicle for RM 52,000 on 18 September
2020. The annual allowance rate for motor vehicles is 20%. Compute the capital
allowance and balancing charge (if any) for all the relevant year of assessment.

RM

YA 2017 Qualifying expenditure 50,000

Initial allowance (20% × 50,000) (10,000)

Annual allowance (20% × 50,000) (10,000)

YA 2018 – 2019 Residual expenditure 30,000
Annual allowance (20% × 50,000 × 2 years) (20,000)

Residual expenditure 10,000

YA 2020 Disposal value (52,000 50,000 ) (16,250)
160,000 6,250

Balancing charge

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

ASSETS DISPOSED WITHIN TWO YEARS (PARAGRAPH 71)

When a person has claimed for capital allowances and subsequently disposed of plant
and machinery within two years of acquisition, all capital allowances claimed shall be
withdrawn and would be treated as balancing charges.

Exercise 5

Chacha Sdn. Bhd. purchased a machine for RM 66,000 on 15 June 2019 and closes
its accounting year on 30 September each year. Chacha Sdn. Bhd. sold the machine
on 21 February 2020 for RM 30,000. The annual allowance for the machine is 14%.

Calculate capital allowance and balancing charge (if any) for Chacha Sdn. Bhd. Up to
year assessment 2020.

ASSETS USED FOR RESEARCH (PARAGRAPH 37D)

The taxpayer who incurs qualifying expenditures for the above purpose is entitled to
claim capital allowance provided the research is approved by the minister, even
though the research activities do not relate to the business carried on the taxpayer.

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

PRACTICAL EXERCISE

QUESTION 1

a) State three (3) conditions to claiming capital allowance.

(3 marks)

b) On 8 September 2020, Irzuan Sdn. Bhd. purchase a new car costing RM 188,888
from Nazar Auto Bhd. Determine the qualifying expenditure of the car if;
i. The car was not licensed for commercial transportation.
ii. The car was licensed for commercial transportation.
(4 marks)

c) Juandy Sdn. Bhd. purchased a lorry on 12 July 2016 costing RM 220,000. Its
accounting year ended on 30 June every year. The annual rate for the lorry is 20%.
The lorry was sold for RM 70,000 on 7 February 2020. Compute the capital
allowances for the related year of assessment and balancing charge/ allowance (if
any).
(13 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 2

Far Far Away Sdn. Bhd. has a financial year ending on 30 September annually. The
following is the list of assets bought by the company for its operation purposes:

a) Machine A
On 1 January 2017, the company bought a machine A for RM 65,000. It was traded in
for a new machine B on 1 March 2019. Cost of the new machine B is RM 108,000.
The trade in value of machine A was RM 30,000. IRB agreed that ¾ of the machine B
usage was meant for business purposes. Annual allowance for the machine is 14%.

b) Plant
On 1 June 2019, the company bought a new plant costing RM 95,000. The cost
incurred for preparing the site to install plant was RM 18,000. Annual allowance for
plant is 14%.

c) Lorry

Date of purchase : 1 May 2017

Cash price : RM 145,000

Deposit paid on 1 May 2017 : RM 35,000

Monthly installment for 25 month,

commencing on 1 June 2017 : RM 4,600

Annual allowance : 20%

The lorry was sold on 10 August 2020 for RM 80,000.

Required:

Compute the capital allowance, balancing charge/ allowance (if any) for the mentioned
assets for the relevant year of assessment until year of assessment 2020.

(25 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 3

Teguh Sejahtera Enterprise was wholly owned by Syed Malek and closed its
accounting year on 30 June annually. The following are assets owned by the firm:

a) Steamer
The steamer was purchased from Syarikat Alpha Sdn. Bhd. on 25 October 2017. The
cash price was RM 92,000. Deposit made was RM 30,000 on 1 October 2017 and 20
monthly installments of RM 4,200 were made beginning from 1 November 2017.
Annual allowance rate 14%.

b) Laminator
The laminator was purchased on 5 February 2016 for company use at RM 5,000 in
cash. On 4 Mac 2019, the laminator had technical problem and need to be repaired.
On 5 June 2020, it was sold for 1,200. Annual allowance rate is 10%.

c) Computer
On 10 October 2018, three laptops were bought for RM 9,000 by cash from Cahaya
Mega Sdn. Bhd. for management use. Annual allowance rate is 80%.

Required:
Calculate the capital allowance, balancing charge/ allowance (if any) for the company
up to year of assessment 2020.

(25 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 4

Hazqawah Sdn. Bhd. is an instant flour manufacturer and ends its accounting year on
31 December each year. The company has marketed its product to abroad especially
to Singapore, Taiwan and China. Details of the company assets are as follows:

Car

The company purchases a car on hire purchase for the use of its director. Details

related are as follows:

Cash price : RM 160,000

Deposit paid : RM 40,000

Number of installment : 120 times commencing on 30 March 2019

The rate of annual allowance : 20%

1/3 of the car usage was meant for personal purposes.

Machine A
On 30 April 2017, machine A was bought. The residual expenditure on early 2019 was
RM 80,000. Annual allowance is 20%.

Machine B
On 1 August 2017, machine B was bought for RM 45,000. Annual allowance is 14%.
On 1 April 2020, it was sold for RM 20,000 because the uneconomic usage.

Required:
Compute the capital allowance, balancing charge/ allowance (if any) for the relevant
year of assessment until year of assessment 2020. Show all the calculation.

(25 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 5

Syarikat Perabot Nadhirah, which made up its accounts to 30 September annually,
purchases a new car under hire purchase for its business purposes. Details are as
follows:

Date of purchase : 1/7/2016
Cash price : RM 104,000
Cash deposits (on date of purchase) : RM 44,000
Date of first installment : 1/8/2016
Monthly installment : RM 3,000
Number of installment : 24 times
Rate of annual allowance : 20%

The car was sold on 1/4 /2020 for RM 52,000.

Required:
a) Calculate the monthly installment (excluding interest).

(3 marks)

b) Calculate the capital allowance, balancing charge/ allowance (if any) for the
relevant year of assessment until year of assessment 2020 if:
i) The car is licensed for commercial transport
(11 marks)
ii) The car is not licensed for commercial transport
(11 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 6

Sewarna Putih Melati Sdn. Bhd. is a poultry company in Kulim with a financial year

ended 31 December. The following are non-current assets brought throughout its

operation.

a) Toyota Harrier

Date of purchase : 1 July 2019

Cash price : RM 145,000

Type of vehicle : Non-commercial (for business’s director)

Annual allowance : 20%

b) Machine Pallet Force
Bought on 1 May 2019 at RM 15,800. Before the machine can be use, the site
must be prepared. The cost of leveling the land is RM 900. The annual
allowance is 14%.

c) Machine BB

Date of purchase : 1 November 2018

Cash price : RM 8,000

Deposit : RM 500

Monthly installment : RM 780 (paying starting December 2018)

No. of installment : 12 months

Annual allowance : 14%

Required:
a) Give difference between national allowance and annual allowance.

(4 marks)
b) Calculate the capital allowance for the relevant year until year of assessment

2020.
(21 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 7

a) Explain the situation where balancing charge might arise.

(2 marks)

b) Sinar Cahaya Sdn. Bhd. closed account on 31 December annually. The
following is the list of assets bought by the company for its operation purposes:

i) Machine
The machine was purchased on 5 February 2016 for company use at
RM 15,000 in cash. On 26 July 2020, it was sold for 8,500. Annual
allowance rate is 14%.

ii) Car (Non-commercial)

The company purchases a car on hire purchase for the use of its director.

Details related are as follows:

Cash price : RM 140,000

Deposit paid : RM 50,000

Number of installment : 60 times commencing on 1 March 2018

The rate of annual allowance : 20%

Required:
Compute the capital allowance, balancing charge/ allowance (if any) for the relevant
year of assessment until year of assessment 2020. Show all the calculation.

(23 marks)

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 8

a) Define the term capital allowance?

(2 marks)

b) State THREE (3) conditions to be fulfill before a person can claim capital

allowance

(3 marks)

c) Suria Sdn. Bhd. Prepares its account to 30 September annually, carries on a

textile manufacturing business. Information regarding fixed assets transactions are

as follow:

Asset 1 : Motor Vehicle: Toyata Altis (New)

Cash price RM120,000

Deposit (paid on 11 March 2016) RM36,000

Amount of each installment RM2,250

No. of installment 48 month

1st installment date 1 April 2017

This car acquired by hire purchase on 1 March 2017. This car sold on 15 August
2020 for RM75,000. This motor vehicle not licensed for commercial transportation of
passengers and goods. Annual allowance rate 20% per annum.

Asset 2 : Heavy Machinery Installed at Factory

Purchased on 1 October 2018

Purchase price RM100,000

Installation cost RM10,000

Annual allowance rate 20% per annum

Asset 3 : Lorry RM280,000
Acquired by cash on 1 July 2019 20% per annum
Annual allowance rate

Required:

Calculate the capital allowances, balancing charges or allowances (if any) for Suria
Sdn. Bhd. For all relevant years of assessment up to year of assessment 2020.

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CHAPTER 5: RELIEF FOR CAPITAL EXPENDITURE: PLANT AND M ACHINERY YEAR ASSESSM ENT 2020

QUESTION 9

Rebecca Company, which made up its accounts to 31 December annually. Detail of
the company assets are as follows:

Asset Date of purchase Cost/ Notes
Machine 1/11/2018
RM140,000 (cash price)
New Car 1/6/2019
Machine only used 1/3 he time for personal
purposes

RM148,000 (Cash price
RM40,000 (deposits – on date of purchase)
RM4,500 (monthly installment – starting from
1/7/2019)

Non commercial
Number of installments – 25 times

Required:

Calculate the capital allowances for all assets for Rebecca Company for all relevant
years of assessment up to year of assessment 2020.

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