Question 2 (Forest) JungTim Sdn Bhd (year-end 30 September) is an active company which has licence to extract timber.

It was reported that the company had incurred the following expenditures during the timber extraction activities:

Year end 30 September 2007

30 September 2008

Expenditures Construction of road Construction of labour quarters Purchase of machinery Construction of road Construction of labour quarters Rental of machinery

RM 20,000 40,000 500,000 27,000 36,000 370,000

The company ceased to extract timber on 30 August 2010. The forest was disposed of on 30 November 2010. JungTim Sdn Bhd received sale proceeds of RM40,000 and RM55,000 related to capital expenditure incurred in 2007 and 2008 respectively. The company decided to make an election under paragraph 32(1) of Schedule 3, Income Tax Act 1967. REQUIRED: Compute the forest allowances and charges (if any) for the relevant years of assessment.

Question 3 (Agriculture) CK Sdn Bhd is in the business of breeding deers since year 2010. The company closes all accounts to 31 December annually. The expenditures incurred for the business are as follows: Date 1.4.2009 Expenditures RM Cost of land (including cost of clearing the land of 400,000 RM50,000) 28.4.2009 Construction of fences 250,000 1.5.2009 Construction of storeroom 45,000 1.6.2009 Purchase of deer foodstuffs 65,000 1.1.2010 Construction of labour quarters 60,000 Assume that the company is operating until the farm is sold to NN Sdn Bhd (financial year ends on each 30 September) on 30 June 2012 for a consideration of RM650,000.

REQUIRED: Calculate the agricultural allowance/charge for CK Sdn Bhd and NN Sdn Bhd (if any) for the year of assessment 2009 to 2012.