B. Upon expiration of the pioneer status, Brownish Bhd is planning to apply for reinvestment allowance. The following expenditure is expected to incur by the company in the year 2027 in relation to its business expansion program: Expenditure Purchase of land RM 4,000,000 Hi-technology plant and machineries New factory building Construction 1,900,000 2,660,000 of new automated storeroom 300,000 Office equipment 165,000 2027 Adjusted income Capital allowances Interest in RM 10,200,000 2,000,000 income 185,000
B. Upon expiration of the pioneer status, Brownish Bhd is planning to apply for reinvestment allowance. The following expenditure is expected to incur by the company in the year 2027 in relation to its business expansion program: Expenditure Purchase of land RM 4,000,000 Hi-technology plant and machineries New factory building Construction 1,900,000 2,660,000 of new automated storeroom 300,000 Office equipment 165,000 2027 Adjusted income Capital allowances Interest in RM 10,200,000 2,000,000 income 185,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 29P
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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