During the year 2020, Akasia Maju Bhd (AMB) purchased a piece of land with an existing building for RM1,125,000. The land was valued at RM1,050,000 and the building at RM75,000. AMB demolished the building and constructed a new building as headquarters on the site. The new building and land improvement are expected to last for 80 years with no residual value and the construction was fully completed by the end of the year 2020.

  The following represents the various items related to the project in year 2020:

Items	RM
Lawyer’s fee to close the purchase deal	22,500
Cost of land fill and clearing	18,000
Architect’s fee	120,000
Fencing around the land	60,000
Cost of demolishing existing building	97,500
Interest on financing of construction paid during construction	282,000
Receipts from sale of demolition scraps	15,000
Construction costs	1,200,000
Landscaping (trees and shrubs)	30,000
Parking lots and concrete walks on the property	180,000
Insurance premium during construction period	18,000
Moving costs from old headquarters to new headquarters	150,000

 

To accommodate the mission of improving productivity and efficiency, the company also bought a new special equipment and made the following payments.

 

Items	RM
Manufacturer’s list price	4,303,500
Trade discount	37,500
Delivery charge	75,000
Installation charge	50,250
Additional components to increase capacity	107,250
Service and maintenance	24,750
Replacement parts	17,000
Test runs	16,500
Small spare parts	2,600

 

REQUIRED:

Calculate the cost of land, land improvement, building, and equipment based on MFRS 116 Property, Plant, and Equipment. Please show your calculations.