(C) ZAPRYL BHD is in the process to finalise its financial statements for the year ended 31 December 2019. Based on its current records, the profit before tax is RM3,200,000 (2018: RM3,000,000). However, the followings have been discovered:

(a) Sales invoices dated 24 December 2018 amounted to RM8,000 and 27 December 2019 amounted to RM10,000 were both fake.

(b) An investment property was purchased in January 2015 at a cost of RM2,000,000 with a useful life of 25 years and was accounted using the cost model. However, for the financial year 2019, the management decided to use the revaluation model whereby the fair value on 31 December 2019 is RM2,800,000 (2018 and 2017: RM2,500,000).

(c) A machinery which was purchased on 4 January 2015 at a cost of RM100,000 has been depreciated using the straight-line method for 10 years useful life with a residual value of RM10,000. Assessment revealed that the machine can be used for another three years with no changes in residual value.

Required:

(i) Classify each of the above events according to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. (4 marks)

(ii) Determine the effect of each of the above events on the profit before tax for the financial year ended 31 December 2018 and 2019 after the adjustments have been recorded. (8 marks)