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B. Ms Suria owns a building in Kota Bharu area of which 90% of the floor space is tenanted to third parties. While the remaining

B. Ms Suria owns a building in Kota Bharu area of which 90% of the floor space is tenanted

to third parties. While the remaining 10% is being used as an administration office. The

building was bought for RM250,000 from a friend on 1 January 2018. Ms Suria also had

to pay legal fees of RM10,000 to acquire this building. The estimated useful life of the

building was 50 years. Ms Suria adopted fair value model. Hence, the fair value of the

building at the end of the first year was RM270,000.

Ms Suria also owns a piece of land in Kuala Terengganu. As for the moment, Ms Suria

has not decided on what to do with the land. She bought it with the intention of helping a

friend in needs. She paid RM40,000 for the land. She also had to pay the legal fees of

RM5,000. b. Discuss the classification of the building acquired by Ms

Suria in accordance with

MFRS 140 Investment Property.

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