(3) Customised Baking Equipment 2 BCB entered into a contract with a customer to supply and install a customised baking equipment on 1 January 2020 and to service the equipment on 1 July 2020. The cost of an equipment is RM8,000. It is possible for a customer to purchase both the equipment and the maintenance services separately. On 1 January 2020, the cash selling price of a machine of the model sold to the customer is RM12,596. Experience has shown that the servicing of an equipment sold to the customer is expected to cost BCB RM1,500 for first service and RM2,500 to perform the second service. The customer will be charged a margin of 50% on cost for the services. The customer will only oblige to pay BCB when the equipment and services are completely performed on 1 January 2021. The prevailing rate for one-year credit granted to trade customers in the industry is 10.3% per annum. You are required: (i) Identify the components of the transaction that BCB must apply the revenue recognition criteria to separately. (3 marks) (ii) Discuss in how BCB shall recognise the revenue on customised baking equipment. (10 marks) (iii) Prepare accounting entries to record the information set out above in the accounting records of BCB for the years ended 31 December 2020 and 2021. (7 marks) (iv) You may show an extract of revenue disclosure in the notes of BCB for the year ended 31 December 2021. (6 marks)