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ACC3024 – Advanced TaxTutorial 4Question 1Also, discuss why leasing is sometimes better than other methods of financing from theperspective of tax.
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ACC3024 – Advanced TaxResidual expenditure 31.12.2001260,000Y/A 2002 (y/e 31.12.2002)Annual Allowance14%(70,000)Residual expenditure31.12.2002190,000Y/A 2003 (y/e 31.12.2003)Disposal value 12.4.2003190,000Residual expenditureNILAlfo Sdn BhdY/A 2003 (y/e 31.12.2003)Qualifying expenditure190,000Initial AllowanceNilAnnual Allowance (14% x 500,000)(70,000)Residual expenditure 31.12.2003120,000Y/A 2004 (y/e 31.12.2004)Annual allowance14%(70,000)Residual expenditure31.12.200450,000Y/A 2005 (y/e 31.12.2005)Sale proceed 7.7.2005530,000Balancing charge450,000but restricted to RM450,000Highlight Sdn BhdY/A 2005 (y/e 31.12.2005)Qualifying plant expenditure530,000Initial Allowance(20% x 530,000)106,000Annual Allowance(14% x 530,000)74,200(180,200)Residual expenditure 31.12.2005349800Y/A 2006 (y/e 31.12.2006)Annual Allowance14%(74,200)Residual expenditure 31.12.2006275,600Sorting MachineY/A 2005 (y/e 31.12.2005)Deposit 20.2.200580,000Instalment – principal (5000x10)50,000130,000Initial allowance20%26,000Annual allowance14%18,200(44,200)Residual expenditure 31.12.200585,800Y/A 2006 (y/e 31.12.2006)Instalment (12x5000)60,000145,800Initial allowance(20% x 60,000)12,000Annual allowance(14% x 60,000)8,400Annual allowance (14% x 130,000)18,200(38,600)Residual expenditure 31.12.2006107,2002
ACC3024 – Advanced TaxLeasing is a better method of financing for the following reasons

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Term
Fall
Professor
NoProfessor
Tags
Unquoted, AmBank, Amway Bhd, Yanko Sdn Bhd

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