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Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is
Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal space. Four floors are used for administrative purposes and the balance let out to tenants. Air Indah Bhd also incurs the following costs in connection with the purchase of the property. RM'000 Legal and agency fees 6,000 Soft launching cost to market for tenants 1,000 Feng Shui cost for rearrangements of interiors 600 Administrative expenses 400 8.000 Determine the cost of the investment property on initial recognition. Select one: a. RM 164,800 b. RM 41,200 c. RM 306,000 d. RM 208,000
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