DelCasa Bhd. (Casa) owns a chain of hotels, theme parks and casinos. During the year ended 31 July 2021, Casa sold a theme park, a casino and a hotel in Parkland to BayView (Bay), a public listed company, for RM5 million. In the sale agreement it was stated that Casa would continue to operate and manage the three businesses for the remaining useful life of fifteen years. The residual interest in the business will revert to Casa after the fifteen-year period. Casa would receive 75% of the net profits of the businesses as operator fees and Bay would receive the remaining 25%. Casa has guaranteed Bay that the minimum profits to be paid would not be less than RM15 million.

On 1 August 2020, Casa sold one of its hotels to a third-party venture capitalist and leasing it back under a ten-year lease. The sale price is RM6.0 million and the fair value of the asset is RM6.0 million.

The lease payment is RM0.28 million per annum in arrears commencing on 31 July 2021. The present value of future lease payments is RM2.0 million and the implicit interest rate in the lease is 6.6%.

The hotel had a remaining useful life of 30 years at 1 August 2020 and a carrying amount of RM4.8 million.

Required:

Describe how the above sale transactions in DelCasa Bhd. should be reflected in its financial statements for the year ended 31 July 2021. (25 marks)