B. My Landmark Bhd. acquired a property in Kuala Nerus, Terengganu. The property consists of a 5-acre tract of land and an old building. The following costs were incurred for the acquisition: Items Purchase Price Stamp Duty Brokerage Fees Legal Fees General Overhead Costs RM 500,000 3,000 16,000 10,000 2,700 The company plans to construct a new manufacturing complex in that area. For that purpose, the company demolishes the old building as the conditions of the building are not safe. The demolition cost consists of RM12,000 payment to Zemia Bhd., the contractor for the job. After the demolition, My Landmark Bhd. received RM2,500 from the disposal of salvaged materials from the old building. Further costs amounted to RM25,000 were incurred before the construction of the new building can be performed. They consist of: Activity Clearing and grading the land before construction General administrative cost Setting up drainage systems around the site RM 12,000 3,000 10,000 Required: a) Determine the amounts that My Landmark Bhd. should capitalize as the cost of the property. (10 marks) b) An entity generally applies MFRS 116 Property, Plant and Equipment, in accounting for Property, Plant and Equipment (PPE). Explain the key criteria in recognizing a PPE according to MFRS 116. (2.5 marks)