Advise the accounting treatment and the journal entries for the revaluation of land on 31 December 2021. (4 marks)

PART B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Debit Credit RM RM Sales 1,306,800 Cost of sales 562,200 Selling and distribution expenses 54,800 Administrative expenses 100,260 Interim Dividend 64,800 Interest on loan 43,750 Interest on debentures 16,440 Tax paid 70,400 Inventories as at 31 December 2021 (at cost) 352,700 Bank 424,248 Intangible asset 326,250 Land 1,800,000 Building (at cost) 880,000 Machinery (at cost) 386,000 Motor vehicle (at cost) 1,223,700 Accumulated Depreciation (31 December 2020): Building 440,000 Machinery 87,320 Motor vehicles 656,198 Receivables and Payables 211,750 131,050 Allowance for Impairment of Trade Receivable 15,430 Rental income 57,200 4.5% Bank loan 1,300,000 8% Debentures 411,000 Retained profit as at 31 December 2020 422,300 Ordinary share capital 1,200,000 12% Preference shares capital 330,000 General reserve 60,000 Assets Revaluation Reserve as at 31 December 2020 100,000 6,517,298 6,517,298 You are given the following information: 1. The information related to the property, plant and equipment of the company is as follows: a. The depreciation policy of the company is as follows: Building 5% on cost; yearly basis. Machinery 5% on reducing balance; yearly basis. Motor vehicles 20% on reducing balance, monthly basis. Land is not depreciated. Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses. b. 5% Throughout the year, the company had acquired the following assets: Assets Cost Financing (RM) method Purchase price 372,000 Motor vehicles Trade discount Road tax & Insurance 6,420 Credit basis Date of acquisition: Cost of painting company's logo 5,190 26 March 2021 Cost of maintenance 2,250 Purchase price 188,900 Machinery Import duties 2,340 Installation cost 6,210 Cash basis Date of acquisition: Transportation cost 3,980 4 July 2021 Training cost 15,870 The acquired machinery has an estimated residual value of RM15,800. On 29 September 2021, one of the vehicles costing RM88,700 involved in an accident and totally damaged. Company received R22,000 from the insurance company as compensation. The vehicle was acquired on 11 July 2019. On 31 December 2021, the land was revalued to RM2,505,000 by a professional valuer. The management decided to incorporate the revalued amount in the company's book. C. d