d. Depreciate both the land and building over 50 years. 4. On 1 January x1, an entity acquired a plant at a cost of RM400,000 whose estimated useful life is ten years with no residual value. On 1 July x3, a major component, whose initial cost is RM100,000 and which is depreciated at 10% per annum is replaced with a new component at a cost of RM120,000. There is no change in the estimated useful life of the plant. The carrying amount of the plant on 1 July x3 after the replacement of the part will be: a. RM400,000 - depreciation RM80,000 + RM120,000 = RM440,000. b. RM400,000 - RM120,000 + RM120,000 = RM400,000. c. RM400,000 - RM80,000 - RM80,000 + RM120,000 = RM360,000. d. RM400,000 - depreciation RM100,000 - RM75,000 + RM120,000 = RM345,000. 5. On 1 January x1, an entity acquired a plant at a cost of RM2 million. The estimated life of the plant was determined as ten years with no residual value. The entity decided to use the revaluation model. On 31 December x2, the fair value of the plant was RM2.4 million. The carrying amount of the plant and the balance on the revaluation reserve on 31.12.x3 will be: a. Plant: RM2.4 million, Revaluation reserve: RM800,000. b. Plant: RM2.1 million, Revaluation reserve: RM800,000. c. Plant: RM2.16 million, Revaluation reserve: RM720,000. d. Plant: RM2.1 million, Revaluation reserve: RM700,000. 6. During x4 bought a new machinery. The