13 Pulse Bhd has provided information on its intangible assets as follows:

(i) A franchise was acquired from Brilliant Bhd for RM5 million on 1 January, 2018 to manufacture chocolate cookies. Pulse Bhd estimated the useful life of the franchise to be 10 years. The franchise had a carrying value of RM4 million when it was sold to Pulse Bhd. In order to manufacture and sell the cookies, Pulse Bhd rented a premise for RM800,000 a month. On 1 January, 2018, new equipment and furniture were bought from Brilliant Bhd for RM7 million and their estimated useful life is ten years. Additional cost of RM1.5 million was incurred on the promotion of the product and staff training,

(ii) A trademark was acquired in March 2018 from Long Lasting Memorable Bhd for RM1 million, in order to differentiate a leading customer product. Pulse Bhd renewed the trademark every five years. All evidence indicates that the trademark product will generate net cash inflows for an indefinite period of time.

(iii) Acustomer database which includes name, contactinformation, order history and demographic information was developed in 2018. The estimated cost in developing the customer list was RM800,000. Pulse Bhd estimates to benefit from the information over the next three years.

Required:

(a) Discuss the importance of the above intangible assets to the capital providers of Pulse Bhd.

(b) Determine how Pulse Bhd should account for the first intangible asset and its related cost.

(c) Prepare a schedule showing the intangible assets section of the statement of financial position as at 31 December, 2018.

(d) Prepare the extract of the statement of profit or loss for the year ended 31 December, 2018, showing all expenses resulting from the transactions,