Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started