Reference no: EM132934990

Problem - Mamak Trading constructed a factory at a cost of RM1.9 million of which RM700,000 was the land. The building was completed on 1 November 2014 and 118 of the building was used as an office. On 1 February 2019, the building was sold to Malim Jaya for RM3.1 million, including RN11 million for the land. Malim Jaya used the whole building as a factory. An extension to the building costing RM120,000 was constructed by Malim Jaya on 2 May 2019. The extension was completed and brought into use as a warehouse for the storage of raw material for manufacturing. Both company close their accounts on 31 December annually. Calculated the industrial building allowances for both companies for all the relevant years of assessment up to and including year of assessment 2020.