(Learning Objective 3, 5: Preparing a note to the fi nancial statement) Musashi Ltd commenced operations on January 1, 20X6. On that day, it bought:

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

■ Furniture and fi ttings costing ¥2 million, with a useful life of 4 years.

■ Motor vehicle costing ¥4 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 you may need to look at how BASF provided a similar note on its PPE.