(a) Is it TRUE or FALSE that metals are good thermal conductors compared to nonmetal? Compare and justify your answer based on Diamond and Copper properties. [3 marks] (b) Mr. Mark received a task on indicating which one is diamond or cubic zirconia. They both look exactly the same. What should he do to differentiate these two crystals? Elaborate. Depreciation on building, plant and machinery are to be treated as administrative expenses while depreciation on motor vehicle is to be treated as selling and distribution expenses. Land is not depreciated. On 1 August 2021, FBB places an order for a new machine from Cepat Berhad in order to meet the increasing demand for the company's cosmetic products. The machine was delivered on 1 September 2021. The costs incurred were as follows: The new machine has an estimated useful life of five years with no residual value and to be depreciated on a straight-line method at the rate of 20% on yearly basis. The company closes its accounts on 30 June each year. The payment for the initial cost and the expenses of the new machine above was made by cheque. However, no record was made in the company's book. On 30 June 2022, FBB decided to dispose of its old machine to Softy Trading for RM52,000. The company acquired the machine on 1 July 2019 at a cost of RM102,000. No record was made on the disposal. Required: i. Explain whether the new machine satisfies the definition of property, plant and equipment in accordance with the MFRS116 Property, Plant and Equipment. (3 marks) ii. Compute the initial cost of the new machine acquired by the company during the year. (4 marks) iii. Calculate the current year's depreciation charges for the new and old machine as at 30 June 2022 . (4 marks) iv. Assess whether FBB can derecognize the machine from its book in accordance with MFRS 116 Property, Plant and Equipment. (4 marks) v. Recommend the accounting treatment on the derecognition of the old machine. (5 marks) (Total: 20 marks) (a) Is it TRUE or FALSE that metals are good thermal conductors compared to nonmetal? Compare and justify your answer based on Diamond and Copper properties. [3 marks] (b) Mr. Mark received a task on indicating which one is diamond or cubic zirconia. They both look exactly the same. What should he do to differentiate these two crystals? Elaborate. Depreciation on building, plant and machinery are to be treated as administrative expenses while depreciation on motor vehicle is to be treated as selling and distribution expenses. Land is not depreciated. On 1 August 2021, FBB places an order for a new machine from Cepat Berhad in order to meet the increasing demand for the company's cosmetic products. The machine was delivered on 1 September 2021. The costs incurred were as follows: The new machine has an estimated useful life of five years with no residual value and to be depreciated on a straight-line method at the rate of 20% on yearly basis. The company closes its accounts on 30 June each year. The payment for the initial cost and the expenses of the new machine above was made by cheque. However, no record was made in the company's book. On 30 June 2022, FBB decided to dispose of its old machine to Softy Trading for RM52,000. The company acquired the machine on 1 July 2019 at a cost of RM102,000. No record was made on the disposal. Required: i. Explain whether the new machine satisfies the definition of property, plant and equipment in accordance with the MFRS116 Property, Plant and Equipment. (3 marks) ii. Compute the initial cost of the new machine acquired by the company during the year. (4 marks) iii. Calculate the current year's depreciation charges for the new and old machine as at 30 June 2022 . (4 marks) iv. Assess whether FBB can derecognize the machine from its book in accordance with MFRS 116 Property, Plant and Equipment. (4 marks) v. Recommend the accounting treatment on the derecognition of the old machine. (5 marks) (Total: 20 marks)