P4-43A. (Learning Objectives 3, 5: Preparing a note to the financial statement) Musashi Ltd. commenced operations on January 1, 20X6. On that day, it bought:

■ Equipment costing ¥3.6 million, with a useful life of 3 years.

■ Furniture and fittings costing ¥2.4 million, with a useful life of 4 years.

■ Motor vehicles costing ¥4.5 million, with a useful life of 10 years.

No other PPE was purchased or disposed of during the year.

Requirements What would Musashi report as PPE on its Balance Sheet? Prepare the notes to the accounts related to PPE. Note that you may need to look at how BASF provided a similar note on its PPE.