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a) Ibu Mertuaku Berhad manufactures paper boxes. The company closes its accounts annually on 31 May, and in its year ended 31 May 2022, the company acquired the following assets:

• A lorry was acquired under a hire purchase scheme and the relevant details are as follows:

	RM
Cost	210,000
Deposit paid on 10 January 2018	30,000
Loan	180,000
Interest	2,000
Instalment period (months)	24
First instalment due on	1 February 2022

• A heavy machine was acquired for RM3,000 and used in the company.
• A reconditioned van was acquired for RM130,000 to transport their management team. The van was not licensed as a commercial vehicle.
• On 3 October 2022, the company bought a folding machine for RM120,000.

Required:

Compute the total capital allowances claimable by Ibu Mertuaku Berhad for the above assets for the year of assessment 2022. [30 marks]

b) Labu Labi Sdn Bhd closes its accounts annually on 31 December. On 3 May 2022, the company disposed of a company car for RM60,000.

The company acquired the car on a hire purchase basis on 1 July 2016 for RM200,000 for use by the managing director.

The residual expenditure brought forward at 1 January 2022 was RM10,000.

Required:

Calculate the balancing adjustment which arises for Labu Labi Sdn Bhd on the disposal of the car on 3 May 2022 for the year of assessment 2022. [5 marks]

c) Not all factories are considered as industrial buildings in tax law. Explain. [15 marks]

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