BAC2634 PART A B01 On 1 January 2018, DSP Bhd purchased a new machine for cash of RM1,500,000. The machine has an expected life of three years and a nil residual value. DSP received a 50% grant towards the cost of machine on the same date. DSP Bhd's accounting policy for capital-based grants is to treat them as deferred credits and release them to income over the life of the asset to which they relate. On 31 December 2018, it is found that DSP can no longer fulfil the requirements of the government and hence DSP had to repay the grant in full on 31 December 2018. Required: Prepare the journal entries to record the grant, depreciation and the repayment of the grant (8 marks) PART B DSP Properties Bhd. has submitted a list of its properties in Malaysia to you so that you can advise them whether the properties should be accounted for within the scope of MERS 140 Investment Properties or MFRS 116 Property, Plant and Equipment. The following is the list of properties held by DSP Properties Bhd. as at 1 January 2019: (a) A seven-storey building in Kuala Lumpur and the whole building is leased out to its subsidiary Suria Bhd. for five years. (b ) A five-storey building in Johor Bahru which have been used in production and supply of goods. (c) DSP Properties Bhd. owns a ten-storey building in Taiping and uses the building to operate a hotel. It provides cleaning, maintenance and security services which are considered significant services to the hotel guests. (d) DSP Properties Bhd. owns a shopping mall in Melaka. 80% of the mall are sub- leased to the tenants, while another 15% is still actively search for a new tenant The remaining part of the mall is used for an administrative work by DSP employees. DSP Properties Bhd. provides cleaning, maintenance and security services which are considered insignificant services for the mall. Required: ? Advise the company on the appropriate accounting treatment for its properties in accordance with the relevant MFRSs