As ar 31 December 2016, Quentin Berhad had the following non-current tangible assets: Land Buildings Plant and Machinery Total Warehouse Factory 500.000 400,000 300.000 Costas at 1.1.2016 Accumulated Depreciation as at 1.1.2016 500.000 1.700,000 0 80,000 60,000 100,000 240,000 end. The following transactions have not been accounted for in the books of Quentin Berhad at year- During the year, the land was revalued by a professional valuer at RM800,000. At the beginning of year 2016, a warehouse in Subang Jaya was valued at RM680,000 by Reapfield Malaysia Sdn Bhd who have been operating as professional valuers since . 2001. Another building in Shah Alam (Factory 1) was valued at RM560,000 at year-end by another professional valuer, Shah Consultant Sdn Bhd. This property is being revalued for the second time. An additional factory (Factory 2) was purchased in Klang for RM500,000. This purchased was financed by sale of ordinary shares of RM 130,000 and new financing of RM370,000 A full year's depreciation is charged in the year of purchase and none in the year of sale. A machinery with an original cost of RM100,000 and a net book value of RM80,000 was sold in the year for RM65,000. The depreciation rates for buildings are 2% per annum and the depreciation rates for plant and machinery are 25% on reducing balance value. . Extract from Income Statement of Quentin Berhad Turnover Operating Income (before depreciation charges 2,000,000 400,000 Required: (a Calculate the Net Book Value of the non-current assets as at 31 December 2016 (Round up the depreciation charge for the year) (20 marks) (b) Identify an advantage of revaluing assets to their fair value rather than showing them at historic cost. (4 mark) (c) Explain how the sale of the machinery would be recorded in the income statement and (6 marks) cash flow statement. (d) Explain the impact of the purchase of the new factory in Klang, on the Income Statement, Statement of Financial Position, and the Cash Flow Statement (10 marks) (e) Calculate the impact of depreciation policies on the operating profit margin of Quentin Berhad. (5 marks) (0) Comment on the impact on ROCE ratio from revaluing the land. You do not need to calculate ROCE (5 marks) (Total: 50 marks) The End - FIN3234(FV April 17 Yormatted