Calculate the reinvestment allowance claim

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Reference no: EM133049272

Question - Premium Glove Sdn Bhd (PG) is a leading manufacturer of disposable rubber gloves. PG located in Perak and is planning to expand its production lines to meet the extensive demand for its products in Malaysia.

PG's budgeted profits and capital expenditure in 2020 and 2021 are shown below:

 

2020 RM'000

2021 RM'000

Adjusted income

1,680

7,200

Capital allowance

800

900

Rental income (net)

45

58

Approved donations

35

40

Projected capital expenditure:

 

 

Land in Perak

1,600

Nil

Factory

3,000

1,500

Plant & machinery

1,300

400

PG is entitled to 60% of the qualifying expenditure to be offset against 70% of the company's statutory income.

Required - Calculate the reinvestment allowance claim and compute the chargeable income of PG incorporating reinvestment allowance for years of assessment 2020 and 2021.

Reference no: EM133049272

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