FAR 460 :` Financial Accounting And Reporting 2 PRESENTATION : MFRS 1 16 : Property , Plant and Equipment Question Anggun Bho , a manufacturer of car spare parts acquired a new machinery to be used in its production process on 1 January 2017 . The following information relates to this machinery :" Purchase price RM5, 000, 000 Installation and commissioning costs 600, 000 Import duties and taxes costs 100 , 000 Insurance on shipment 70, 000 Consultants used for advise on acquisition of 10, 000 the machinery Testing of machinery by producing samples 9, 000 General overheads\\ 4 , 600 Start-up and pre-production 10, 000 The company received a trade discount of RM50, 000 on the purchase of the machine . The company also made an initial estimate of dismantling costs of RM89, 000 at the end of the useful life of the plant . The present value of future payment for the dismantling costs was immediately . RNG8, 000 . Other costs incurred on the acquisition of the above machinery were paid It is the policy of Anggun Bho to depreciate its machinery over 10 years based on period of ownership . The annual maintenance of the machinery of the manufacturing facility was RMG8, 000 per year . Anggun Bha had to replace the major component of the motor van on 1 January 2018 . The replacement cost meets the asset recognition criteria . The cost of the new component was RM300, 000 while the cost of the old component was RM 200, 000. This motor van was purchased by Anggun Bha for RM1, 000, 000 to be used in the production process on ] basis . January 2014 . The motor van was depreciated over a 10- year period using a straight- line On 1 January 2018 , Anggun Bho also acquired a new plant at RM500, 000 from Teja Enterprise to cope with the production operation . On 31 December 2018, subsequently , this new plant was sold for RM495, 000 . The remaining useful life of the new machinery on ! January 2018 is 10 years . Anggun Bho revalued it's building for the first time at fair value of RM 10 , 350, 000 on 1 January 2018 . The building was acquired by Anggun Bho on 1 January 2014 at a cost of RM10, 000, 000 The estimated useful life and residual value of the building is 50 years and RM 1, 000, 000 respectively . The company's financial year ends on 31 December every year and wishes to make an annual transfer to retained earnings to reflect the realization of the revaluation reserve