Problem: Stellex Sdn Bhd purchased a factory worth RM3,250,000 (including land cost of RM750,000) from Railform Sdn Bhd on 1 October 2015. The plant was constructed by Railform Sdn Bhd on 1 August 2008 at a cost of RM1, 530,000 and was used as an industrial building upon completion.
On 1 October 2015, due to developments in business, Stellex Sdn Bhd purchased a piece of land adjacent to the factory building at a cost of RM280,000 and built an employee quaters at cost of RM385,000. Construction was completed on 25 February 2016.
Stellex Sdn Bhd and Railform Sdn Bhd provide accounts on 31 December each year.
Required:
Q1. Calculate the balance allowance or balance charges on the disposal of the factory by Railform Sdn Bhd; And
Q2. Calculate the industrial building allowances claimable by Stellex Sdn Bhd for the year of assessment 2015 and 2016.