Please help me to solve this problem MAC Bhd, a resident company, is engaged in the manufacture of auto gates. The companyprepares its accounts to 31 December annually. In 2018, the company constructed a factory inPenang and the factory was completed on 1 June 2019. The company commenced businesson 1 July 2019 and the factory was used in the business from the same date.The following expenditure had been incurred for the construction of factory:RMLand costConstruction costs and other expenses related to the factory1,1000,0003,000,000The total area of the factory is 100,000 square feet, which include the office area of 20,000square feet.MAC Bhd moved its manufacturing business to a new state-of-the-art building based at KualaLumpur in June 2021. The finance director disposed of the factory in Penang, the saleproceeds from the disposal of comprise:RM2,000,0007.000 0009.000.000LandFactoryTotalRequired:i) Čalculate the qualifying building expenditure and the industrial building allowanceavailable to MAC Bhd for the YA 2019 and YA 2020.ii) Calculate the balancing charge/allowance in respect of the disposal of factory for theYA 2021.

Answered: Image /qna-images/answer/511382f8-0e09-483e-b5bf-c688a8873c94.jpg

Required: i) Čalculate the qualifying building expenditure and the industrial building allowance available to MAC Bhd for the YA 2019 and YA 2020. ii) Calculate the balancing charge/allowance in respect of the disposal of factory for the YA 2021.

Required: i) Čalculate the qualifying building expenditure and the industrial building allowance available to MAC Bhd for the YA 2019 and YA 2020. ii) Calculate the balancing charge/allowance in respect of the disposal of factory for the YA 2021.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 1P

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