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POP QUIZ AGRICULTURE ALLOWANCE

Total questions: 10

Worksheet time: 14mins

Name
Class
Date
1.

Agriculture can be defined as

a)

any form of cultivation of crops and any other agriculture or pastoral pursuits.

b)

any form of animal farming, aquaculture, inland fishing and any other agriculture or pastoral pursuits.

c)

any form of cultivation of crops, animal farming, aquaculture, inland fishing and any other agriculture or pastoral pursuits.

d)

any form of aquaculture, inland fishing and any other agriculture or pastoral pursuits.

2.

forms of vegetables produce is called

a)

agriculture

b)

replanting

c)

fertilizing

d)

crops

3.

replanting means

a)

replacement of the crop of any product on any are of land

b)

reforestation of timber

c)

produce on the same area a crop of the same product and includes reforestation of timber

d)

all of the above

e)

none of the above

4.

QAE is the capital expenditure incurred by a person on the following items, EXCEPT

a)

clearing and preparation of land

b)

Cost of keeping, maintenance, fertilizing and pasticide

c)

construction on road and bridge

d)

construction of building for workers welfare

5.

the person can claim the agriculture allowance following conditions EXCEPT

a)

the owner of the asset at the end of the basis period

b)

dispose off the asset when it is not in used within one month before sale

c)

incur the qualifying agriculture expenditure

d)

use the asset in the business

6.

Which of the following is FALSE

a)

When a person transfer or sells an asset which is in use within 1 month before the transfer or sale, he is entitled to only part of allowance in the bases period for YA the asset is transferred

b)

The purchaser is entitled to claim the remaining balance of AA that would have been made to the seller if the asset had not been transferred

c)

The purchase price is considered as QAE of the purchaser to compute the amount of AA

d)

The apportionment of agriculture allowance is based on the basis period of the seller, not basis period of purchaser

7.

Compute the total amount of agriculture allowance for the following agriculture expenditure which incurred in YA 2019:

RM

Cost of land 300,500

clearing and preparation of land 250,000

construction cost of labour quarters 180,000

a)

RM150,250

b)

RM125,000

c)

RM161,000

d)

RM311,250

8.

Agriculture charge when the following circumstances occur EXCEPT

a)

when the farm asset is disposed of within 5 years

b)

when the owner received grant from the government, state of government or statutory authority

c)

elect to spread back the amount of agrculture charge to the immediately preceeding year of assessments

d)

when the farm asset is disposed more than 5 years

9.

TP Sdn Bhd was incorporated on 1.4.2012 to carry on the business of operating a coconut plantation. The company makes up its account to 31.12 annually. The following expenses incurred in year 2016:

RM

Planting of coconut seedlings 120,000

Construction of labour quarters 40,000

Construction of store 30,000


On 30.6.2019 the company disposed off the coconut plantation to HSB Sdn Bhd for RM500,000.


Compute agriculture charge to the above item for TP Sdn Bhd in total for YA 2019. The company did not elect to spread back the agriculture charge.

a)

RM190,000

b)

RM38,500

c)

RM70,000

d)

RM158,500

10.

How much is the agriculture charge for clearing land of RM90,000 when a company disposed off the asset?

a)

RM90,000

b)

RM45,000

c)

RM18,000

d)

RM9,000