(15 Marks) QUESTION 3 The following is an independent events and transactions o LPQ Berhad makes a provision for doubtful debts on 10% of all its trade receivables on 31 December 2019. On 21 February 2019, a customer who owed the entity RM1.5 million was declared as bankrupt a) (3 marks) Soo0 YMS Berhad has profit sharing plan to pay its employees 3% of its profit before tac (before profit-sharing bonus) if it exceeds RM100million. On completing the preparation of financial statement, the profit before tax is RM240 million. b) (3 marks) KLM Berhad signed a contract o acquire a factory building on 12 January 2019. The estimated cost of the building was RM20 million. c) (3 marks) Jaya Hana Berhad decided to celosed down one of its operation on 15 January 2019 () which was identified as a separate operation from the rest of the entity's business. (3 marks) Closing inventory was determined at as RM800,000 based on cost as at 31 December e) 2018. Part of the inventory of RM450,000 was damaged but the entity expected the cost of goods sold to be sold above cost. However, these goods was sold on 20 January 2019 for RM400,000. (3 marks) Required: Indicate if the following events or transactions are adjusting or non-adjusting items based on MFRS 110 Events after Reporting Period. If they are adjusting items, discuss the effect on the financial statement. The financial year end was 31 December 2018 and the account were authorized for issue on 31 March 2019. END OF QUESTIONS ***