A. NanoTech Bhd is a company that involved inmanufacturing and biotechnology activities.Following is the list of assets acquired and constructed during 2020.

1.Transaction1 NanoTech Bhd exchanged 24,000 of its ordinary sharesfor a piece of land held byMono Bhd. The market value per share of NanoTech Bhd was RM48 on the date of exchange and NanoTech Bhd sharesareactively traded. In addition, NanoTech Bhd paid RM4,000 for real estate agent commission and another RM15,000 for real estate taxes. After acquisition, the old building on that land was demolished at a cost of RM23,000. Part ofsalvaged material was sold for RM6,800. NanoTech Bhd also incurred cost of RM13,000 to clear the land. The costs of RM16,000 were paid for fences and another RM22,000 for parking lots. Both fences and parking lots have an estimated useful life of 10 years and the straight-line method is used to depreciate the asset.

2. Transaction 2NanoTech Bhd engaged Coco Construction to design and construct a modern factory building. Construction began on 1 March 2020 and completed on 31 December 2020. NanoTech Bhd made the total payments of RM1,500,000 to Coco Construction during 2020.Other costs involved in the construction are factory permit fees of RM5,000, insurance during construction totalled RM20,000 and interest incurred to finance the project of RM80,000.

3. Transaction 3A brandnew machine that can facilitate the companys production process was bought at a quoted price of RM800,000, subject to termsof 1/20, n/60. In addition, the following expenditure were incurred and paid by NanoTech Bhdfor the machine:

i.Delivery cost of RM1,500

ii.Installation cost of RM18,000

iii.Storagecostfor the machine of RM200 as the machine was delivered before the factory is ready for installation.

iv.Insurance of RM50,000 were incurred as the management seeksto reduce the risk of fire. Out of this amount, 25% was meant to secure the machine while it was in transit.

v.Expense incurred to test the functionality of the installation amounting to RM6,000.

vi.Maintenance fee charge for one year from 1 October 2020 amounting to RM10,000.vii.Small spare parts of RM3,500. viii.Technician training costs to handle the machine was RM12,000.

4. Transaction 4NanoTech Bhd exchanged Building XY which has an appraised value of RM750,000, cost of RM1,265,000, and accumulated depreciation of RM600,000 withBuilding MZ owned byXibo Bhd. Building MZ has an appraised value of RM700,000, cost of RM1,505,000, and accumulated depreciation of RM792,000. The correct amount of cash was also paid or received. Assume depreciation has already been updatedand the exchange has commercial substance

REQUIRED:

(a)Calculate the cost of land, land improvement, factory, machine and buildingbased on MFRS 116 Property, Plant and Equipment. Please show your calculations.

(b)Prepare the journal entries to record the acquisition of land, land improvement, factory, machine and building in accordance to MFRS 116 Property, Plant and Equipment. Please show your calculations.(9 Marks