QuestionQUESTION 2 Dream Colors Sdn Bhd (DCSB) is a paint manufacturer for… QUESTION 2Dream Colors Sdn Bhd (DCSB) is a paint manufacturer for the domestic market operating in the Seberang Prai Free Industrial Zone. DCSB closes its accounts on September 30 of each year. In March 2015, the company completed the construction of a plant which involved the following costs:type of expenditureRMland cost450,000legal fees and stamp duty (RM3,500 related to land)20,000architect fee35,000the cost of road construction in the factory area20,000cost of wiring and provision of drainage system18,000the construction cost of the bulding1,150,000total1,693,000DCSB began its first production operation as soon as the plant was completed. The factory building has an area of ??520,000 square feet of which 46,800 square feet houses office space and product showrooms.Adjacent to the factory, a building that houses a canteen, recreation room and a grocery store for the use of employees was completed in June 2015 at a cost of RM750,000. The space for the canteen, recreation room and grocery store are 3/5, 1/5 and 1/5 of the total space respectively.Also in June 2015, DCSB also purchased a Japanese -tech mold making machine worth RM250,000 to help streamline its production process. As this machine is the latest machine, it requires a special site that is spacious and sophisticated where the preparation of this site cost RM780,000 because works such as penetrating and leveling the ground are required.Adjacent to the factory, a 30 -door apartment concept building that will be used as accommodation for factory workers was started in May 2015. The construction involved a cost of RM660,000. The company’s board of directors has agreed to allocate 5 apartments for the use of five directors of the company. The building came into use on November 1, 2015.A warehouse that will be used to house the inventory of raw materials and finished goods was also developed on 1 December 2015 at a cost of RM500,000. The warehouse was built in Kulim to facilitate the delivery process as most of their customers are in the Kulim High Technology Zone.Be required:a) Calculate the eligible building expenditure for the factory building.b) Calculate the industrial building allowance that can be claimed by DCSB for the assessment years 2015 and 2016. (Explain and show your calculation separately for each building)LawSocial ScienceTax law BUSINESS TAX
