b) Based on the above, discuss on how you would account for the following items by reference to the appropriates approved accounting standards. Support your arguments with reasons. i. The cars and the water pumps. ii. The 2 lands and the clearing cost. iii. The paintings and the antiques. iv. The agriculture land, the chicken coups, the wires, the woods and the construction costs of the cow barn. v. The calves, the goats and the 500 chicks. vi. The durian trees, the durian tree sapling and cow grass. vii. The investment in Company A. (18 Marks) c) Based on the relevant approved accounting standards that you have chosen in (b), journalize each of the transactions that affect RCSB's financial records for the year ended 31 December 2016 and 31 December 2017. Show all your workings. (64 Marks) d) Prepare an extract of RCSB's Statement of Profit or Loss for the year ended 31 December 2017 and Statement of Financial Position as at 31 December 2017. You are required to show the summarized figures that incorporate all the items in part (b) above. (25 Marks) Redang Chalet Sdn Bhd (RCSB) rents out chalet to tourists at a popular beach in Redang, Terengganu. RCSB own 10 chalets, in which the construction cost amounted to RM1 million. Each chalet is depreciated at 20% per annum. In addition to the chalet, RCSB rents out cars to tourists visiting the island. The cars were bought three years ago at a total cost of RM150,000 and are being written off over a period of five years. Recently tsunami hit the island and the demand for car-hire has dropped tremendously. RCSB could only generate RM45,000 cash for the balanced two years. Alternatively, RCSB can sell the cars for RM40,000 as at 31 December 2017. RCSB's chalets are located in remote area in Redang Beach. As advised by the local Water Council, 10 water pumps were installed at the area on 1 January 2017 to draw fresh water from dig well. Each pump cost RCSB RM3,000 with an estimated useful life of 5 years. 6 months after, 4 of the water pumps were damaged during hailstorms. RCSB has not decided whether they want to sell the damaged water pump as scrap or repair the pumps. The scrap value of each of the damaged water pump as at 31 December 2017 is RM500. On 1 January 2015, RCSB bought a nearby land that RCSB intend to build their office building. RCSB decide to use revaluation model. The cost of the land is RM2 million. On 1 January 2016, the fair value of the land was RM2.2 million. On 1 January 2017, the value of the land reduced to RM1.9 million as a result of rat infestation. Clearing and cleaning cost amounting to RM1 million as at 31 December 2017. RCSB bought several paintings from several local street artists for RM3,000 on 1 February 2017. RCSB intend to sell the painting later for capital appreciation. Currently, all the paintings were placed at the board meeting room. As at 31 December 2017 , the fair value of the paintings based on professional valuer estimate stand at RM5,000. In addition, RCSB bought several antiques for RM150,000 in May 2017. These antiques were sold for RM200,000 in July 2017. Another set of antiques were purchased in September for RM300,000. As at 31 December 2017, these antiques were valued at RM350,000. RCSB's top manageman make a decision to venture into adricultare bauiness as another wource of =come. An agriculare land wat purchaied on 1 Janatry 2017 for RM400,000. Clearing cont zmonated to RM50,000. RCSB decided to use eevaluation model for this land. RCSB decided to rear chickenk, goats and cow. Two chicken coup and a cow bern need to be builr wo hose these cattle. RCSB beught wires and woods to build the chicken cocp and the barn. The coestruction of the chicken coupt was RM12,000 whale tee cost ef eve w=ts and woodi amounting to RM10,000. RCSB paid a connractor RM3,000 to buils the cow barn. RCSB decided the ureful life of the chicken cosp to be 2 years while of the cow bern is 5 years without any senidual value. Oa 1 February 2017 RCSB pachased 10 calves and 10kdx. The purchaced proce and fair value of the cattle are stated in table below. The chicks were purchased in December 2017 . As at 31 December 2017 a calf and a goat died due to foed and moeth direase. There was existing 30 durian trees that RCSB didn't cleared out when they bought the agriculfure land. There are no durian wher RCSB beught the land. The market price of these durian trees obeained thoes profentonal valuer was RM2,000 each. The usefut life of these trees was estimaned to be 5 yearn. In ad4ition, purchased 50 durian wees aphag in Dectuber 2017 a well o be planted an the farm. The trees were purchased for future source of inceme. Each of the durian tree sapling cost RM200, RCSB also purchased RMS .000 worth of cow grais saplizg so be planted at tee farm. The cow grass wall be used os feed the carle when the grass marures. b) Based on the above, discuss on how you would account for the following items by reference to the appropriates approved accounting standards. Support your arguments with reasons. i. The cars and the water pumps. ii. The 2 lands and the clearing cost. iii. The paintings and the antiques. iv. The agriculture land, the chicken coups, the wires, the woods and the construction costs of the cow barn. v. The calves, the goats and the 500 chicks. vi. The durian trees, the durian tree sapling and cow grass. vii. The investment in Company A. (18 Marks) c) Based on the relevant approved accounting standards that you have chosen in (b), journalize each of the transactions that affect RCSB's financial records for the year ended 31 December 2016 and 31 December 2017. Show all your workings. (64 Marks) d) Prepare an extract of RCSB's Statement of Profit or Loss for the year ended 31 December 2017 and Statement of Financial Position as at 31 December 2017. You are required to show the summarized figures that incorporate all the items in part (b) above. (25 Marks) Redang Chalet Sdn Bhd (RCSB) rents out chalet to tourists at a popular beach in Redang, Terengganu. RCSB own 10 chalets, in which the construction cost amounted to RM1 million. Each chalet is depreciated at 20% per annum. In addition to the chalet, RCSB rents out cars to tourists visiting the island. The cars were bought three years ago at a total cost of RM150,000 and are being written off over a period of five years. Recently tsunami hit the island and the demand for car-hire has dropped tremendously. RCSB could only generate RM45,000 cash for the balanced two years. Alternatively, RCSB can sell the cars for RM40,000 as at 31 December 2017. RCSB's chalets are located in remote area in Redang Beach. As advised by the local Water Council, 10 water pumps were installed at the area on 1 January 2017 to draw fresh water from dig well. Each pump cost RCSB RM3,000 with an estimated useful life of 5 years. 6 months after, 4 of the water pumps were damaged during hailstorms. RCSB has not decided whether they want to sell the damaged water pump as scrap or repair the pumps. The scrap value of each of the damaged water pump as at 31 December 2017 is RM500. On 1 January 2015, RCSB bought a nearby land that RCSB intend to build their office building. RCSB decide to use revaluation model. The cost of the land is RM2 million. On 1 January 2016, the fair value of the land was RM2.2 million. On 1 January 2017, the value of the land reduced to RM1.9 million as a result of rat infestation. Clearing and cleaning cost amounting to RM1 million as at 31 December 2017. RCSB bought several paintings from several local street artists for RM3,000 on 1 February 2017. RCSB intend to sell the painting later for capital appreciation. Currently, all the paintings were placed at the board meeting room. As at 31 December 2017 , the fair value of the paintings based on professional valuer estimate stand at RM5,000. In addition, RCSB bought several antiques for RM150,000 in May 2017. These antiques were sold for RM200,000 in July 2017. Another set of antiques were purchased in September for RM300,000. As at 31 December 2017, these antiques were valued at RM350,000. RCSB's top manageman make a decision to venture into adricultare bauiness as another wource of =come. An agriculare land wat purchaied on 1 Janatry 2017 for RM400,000. Clearing cont zmonated to RM50,000. RCSB decided to use eevaluation model for this land. RCSB decided to rear chickenk, goats and cow. Two chicken coup and a cow bern need to be builr wo hose these cattle. RCSB beught wires and woods to build the chicken cocp and the barn. The coestruction of the chicken coupt was RM12,000 whale tee cost ef eve w=ts and woodi amounting to RM10,000. RCSB paid a connractor RM3,000 to buils the cow barn. RCSB decided the ureful life of the chicken cosp to be 2 years while of the cow bern is 5 years without any senidual value. Oa 1 February 2017 RCSB pachased 10 calves and 10kdx. The purchaced proce and fair value of the cattle are stated in table below. The chicks were purchased in December 2017 . As at 31 December 2017 a calf and a goat died due to foed and moeth direase. There was existing 30 durian trees that RCSB didn't cleared out when they bought the agriculfure land. There are no durian wher RCSB beught the land. The market price of these durian trees obeained thoes profentonal valuer was RM2,000 each. The usefut life of these trees was estimaned to be 5 yearn. In ad4ition, purchased 50 durian wees aphag in Dectuber 2017 a well o be planted an the farm. The trees were purchased for future source of inceme. Each of the durian tree sapling cost RM200, RCSB also purchased RMS .000 worth of cow grais saplizg so be planted at tee farm. The cow grass wall be used os feed the carle when the grass marures