Dorae Mon Bhd is involved in the manufacturing, packaging and marketing of electronic products in Sungai Buloh, Selangor. Below is the trial balance of Doraemon Bhd for the year ended 30 June 2020: Revenue Cost of Sale Interim Dividend paid Administrative expenses Distribution expenses Finance Cost Income Tax payable Freehold land at valuation as at 1 July 2019 Building at cost as at 1 July 2019 Plant and machinery at cost as at 1 July 2019 Accumulated depreciation as at 1 July 2019 Building Plant and machinery Investment property at fair value as at 1 July 2019 Development cost Investment Ordinary share capital Retained earnings as at 1 July 2019 Asset revaluation reserve as at 1 July 2019 5% Debentures Trade receivables and payables Deferred tax Cash and bank (a) Debit (RM'000) 188,300 20,000 41,200 1,500 824 25,000 7,000 4,819 2,738 77,000 10,000 6,700 48,000 6,440 1,000 440,521 Credit (RM'000) 279,000 880 700 550 100,000 12,511 18,000 20,000 5,500 3,380 Inventories Income taxes paid Total Additional information: The company decided to adopt the revaluation model for building and the fair value on 1 July 2019 is RM7,200,000. The remaining useful life of the building as at that date is 20 years. The fair value of the land as at 30 June 2020 is RM25,500,000. Both revaluations have yet to be recorded in the accounts as at year end. In addition, the company wishes to make annual transfers to retained earnings for any revaluation surplus made as the asset is being used and depreciated. 440,521 (b) A new equipment costing RM780,000 was purchased on 1 July 2019 to replace the old machinery that was purchased on 1 July 2016 at a cost of RM420,000. The old equipment was disposed for RM200,000. None of (c) (d) these transactions have been recorded in the accounts at year end. Plant and machinery are depreciated over their useful life of 10 years. All depreciation charges are included in administrative expenses. The policy of the company is to depreciate all its assets using the straight line method, giving full year's depreciation in the year of purchase and none in the year of disposal. A plant that was purchased on 1 July 2014 at a cost of RM500,000 had a reduction in production capacity since September 2019. This had caused several breakdowns during the production process. The board of directors therefore decided to provide impairment on the plant as at year end. The fair value of the plant as at 30 June 2020 is RM150,000. If the plant is to be disposed, a dismantling cost of RM20,000 is required. The impairment charge has yet to be recorded in the accounts. Plant and machinery are depreciated over their useful life of 10 years. All depreciation and impairment charges are included in administrative expenses. Company acquired a freehold building costing RM2,200,000 on 1 July 2015. The building is fully rented out to various organisations, thus qualifies to be accounted for as an investment property under MFRS140 Investment Property. The estimated life of the building is 30 years. As at 30 June 2020 the fair value of the building is RM3,000,000. The company adopts the fair value model in its measurement of investment property subsequent to initial recognition. The revaluation has yet to be incorporated in company's accounts as at year end. However, as at that date the company decided to occupy the building as a second headquarters for operation of the business. As at year end, reclassification of the building has yet to be recorded in the accounts. Required:- Based on information given at (a) to (d), prepare the note on Property, Plant and Equipment. [30 marks]