An entity purchased a property 15 years ago at a cost of RM100,000 and have been depreciating it at a rate of 2% per annum, on the straight line basis. The entity have had the property professionally revalued at RM500,000 What is the revaluation surplus that will be recorded in the financial statements in respect of this property? A. B. RM400.000 RM430,000 RM500,000 RM530,000 C. D. A building contractor decides to construct an office building to be occupied by his own staff. Tangible non-current assets are initially measured at cost. Which of the following expenses incurred by the building contractor cannot be included as a part of the cost of the office building? A. Direct building labour costs. B. A proportion of the contractor's general administration costs. C. Hire of plant and machinery for use on the office building site. D. Delivery costs in getting the raw materials onto site. Which of the following best describes the purpose of depreciation? A. Allocate the cost less residual value on a systematic basis over the asset's useful Te. B. Write the asset down to its realisable value each period. C. Accumulate a fund for asset replacement. Recognise that assets lose value over time. D. An investment property with a useful life of 10 years was purchased by Akom on 1 January 20X9 for RM200,000. By 31 December 20X8 the fair value of the property had risen to RM300,000. Akom measures its investment properties under the fair value model. What values would go through the statement of profit or loss in the year? A. B. Gain: RM100,000 and Depreciation RM30,000. Gain: RMD and Depreciation of RM30,000 Gain: RM100,000 and Depreciation of O. C. D. Gain: RM120.000 and Depreciation of RM20,000. On 1 April 20X0 Slow and Steady Co held non-current assets that cost RM312,000 and had accumulated depreciation of RM66,000 at this date. During the year ended 31 March 20X1. Slow and Steady Co disposed of non-current assets which had originally cost RM28.000 and had a carrying amount of RM11.200. Slow and Steady Co's policy is to charge depreciation of 40% on the reducing balance basis, with no depreciation charged in the year of disposal. What is the depreciation charge to the statement of profit or loss for the year ended 31 March 20X1? A RM68,000 B. RM93,920 C. RM28.400 D. RM124,800 Gilbert took out a RM7.5 million 10% loan on 1 January 20X8 to build a new warehouse during the year. Construction of the warehouse began on 1 February 20x6 and was completed on 30 November 20X8. As not all the funds were needed immediately. Gilbert invested RM2 million in 4.5% bonds from 1 January to 1 May 20X6. What are the total borrowing costs to be capitalised in respect of the warehouse? A. B. RM22,500 RM602,500 . RM625,000 RM750,000 C. D