Based on information given above, prepare the note on Property, Plant and Equipment.

Laguna Bhd. is a company incorporated in Malaysia. The company involved in manufacturing, packaging and marketing of frozen food and beverages products for the local and international market. The company is aiming to be the leader in providing affordable food and beverages product with superior quality. Below is the trial balance of Laguna Bhd. for the year ended 30 June 2019: Debit Credit RM'000 RM 000 Sales 187,800 Cost of sales 99,310 Interim dividend paid 16,000 Administrative expenses 31,025 Selling and distribution expenses 28.331 Interest expenses 700 Tax payable 1,208 Freehold land at valuation as at 1 July 2018 142,600 Building at cost as at 1 July 2018 90,650 Plant and machinery at cost as at 1 July 2018 53,430 Accumulated depreciation as at 1 July 2018: Building 9,065 Plant and machinery 15,915 Investment property at fair value as at 1 July 2018 4,628 Intangible assets 30,800 Fixed deposits 21,200 Ordinary share capital 240,000 Retained earnings as at 1 July 2018 63,256 Asset revaluation reserve as at 1 July 2018 (related to the freehold land) 16,000 5% Debentures 28,000 Trade receivables and payables 14.184 3,603 Cash and bank 16,680 Inventories 13,658 Income tax paid 1,651 564,847 564,847 Additional information: 3. . On 1 July 2018, the company purchased a new equipment costing RM1,650,000 to replace the old equipment that was purchased in July 2014 at a cost of RM1,220,000. The old equipment was trade-in for RM885,000. The transaction on 1 July 2018 has not yet recorded. Plant and machinery is depreciated over their useful life of 10 years. The depreciation expenses are classified as administrative expenses. The policy of the company is to depreciate all its assets using the straight line method on yearly basis, giving full year's depreciation in the year of purchase and none in the year of disposal. 4. A plant which was purchased on 1 July 2012 at a cost of RM1,340,000 had a reduction in production capacity since September 2018. This had caused several breakdowns during the production process. The board of directors of Laguna Bhd therefore decided to provide impairment on the plant as at year end. The fair value of the plant as at 30 June 2019 is RM350,000 and if it disposed, the company has to incur a dismantling cost of RM12,400. No record has been made to account the impairment loss. 5. The company acquired a building costing RM2,500,000 on 1 July 2013 with the estimated useful life of 30 years. The building is rented out to a third party for RM15,000 per month and the tenancy agreement will be expired on 30 June 2019. Since acquisition, the building was reclassified as investment property and the company adopts the fair value model to measures its investment property subsequent to the initial recognition. The fair value of the investment property on 30 June 2018 was RM4,628,000 and the figure has been recorded. Based on the tenancy agreement, the rental needs to be paid on annual basis and will be due on 30 June each year. However, the rental income for the year ended 30 June 2019 has not been received from the tenants and no record has been made to accrue the rental amount As at 30 June 2019, the company decided not to renew the tenancy agreement and planned to use the building as the company's research center. The fair value of the building is RM5,350,000 on that date. No records have been made to account these transactions. Laguna Bhd. is a company incorporated in Malaysia. The company involved in manufacturing, packaging and marketing of frozen food and beverages products for the local and international market. The company is aiming to be the leader in providing affordable food and beverages product with superior quality. Below is the trial balance of Laguna Bhd. for the year ended 30 June 2019: Debit Credit RM'000 RM 000 Sales 187,800 Cost of sales 99,310 Interim dividend paid 16,000 Administrative expenses 31,025 Selling and distribution expenses 28.331 Interest expenses 700 Tax payable 1,208 Freehold land at valuation as at 1 July 2018 142,600 Building at cost as at 1 July 2018 90,650 Plant and machinery at cost as at 1 July 2018 53,430 Accumulated depreciation as at 1 July 2018: Building 9,065 Plant and machinery 15,915 Investment property at fair value as at 1 July 2018 4,628 Intangible assets 30,800 Fixed deposits 21,200 Ordinary share capital 240,000 Retained earnings as at 1 July 2018 63,256 Asset revaluation reserve as at 1 July 2018 (related to the freehold land) 16,000 5% Debentures 28,000 Trade receivables and payables 14.184 3,603 Cash and bank 16,680 Inventories 13,658 Income tax paid 1,651 564,847 564,847 Additional information: 3. . On 1 July 2018, the company purchased a new equipment costing RM1,650,000 to replace the old equipment that was purchased in July 2014 at a cost of RM1,220,000. The old equipment was trade-in for RM885,000. The transaction on 1 July 2018 has not yet recorded. Plant and machinery is depreciated over their useful life of 10 years. The depreciation expenses are classified as administrative expenses. The policy of the company is to depreciate all its assets using the straight line method on yearly basis, giving full year's depreciation in the year of purchase and none in the year of disposal. 4. A plant which was purchased on 1 July 2012 at a cost of RM1,340,000 had a reduction in production capacity since September 2018. This had caused several breakdowns during the production process. The board of directors of Laguna Bhd therefore decided to provide impairment on the plant as at year end. The fair value of the plant as at 30 June 2019 is RM350,000 and if it disposed, the company has to incur a dismantling cost of RM12,400. No record has been made to account the impairment loss. 5. The company acquired a building costing RM2,500,000 on 1 July 2013 with the estimated useful life of 30 years. The building is rented out to a third party for RM15,000 per month and the tenancy agreement will be expired on 30 June 2019. Since acquisition, the building was reclassified as investment property and the company adopts the fair value model to measures its investment property subsequent to the initial recognition. The fair value of the investment property on 30 June 2018 was RM4,628,000 and the figure has been recorded. Based on the tenancy agreement, the rental needs to be paid on annual basis and will be due on 30 June each year. However, the rental income for the year ended 30 June 2019 has not been received from the tenants and no record has been made to accrue the rental amount As at 30 June 2019, the company decided not to renew the tenancy agreement and planned to use the building as the company's research center. The fair value of the building is RM5,350,000 on that date. No records have been made to account these transactions