Mentari Bhd. purchased a building as an investment property on January 2015 for OS million have a useful life of 25 years and a residual value of RM10,000. The building is appraised on 31 The legal cost relating to the purchase of property was RM100,000. The building is expected to December every year. The fair value of the building is determined to be RM6 million and RM7 million at 31 December 2018 and 2019, respectively. Mentari Bhd. uses the cost model to account its investment property. The company also uses the straight-line method to depreciate is on required at 31 December 2018 and 2019. Prepare all journal entries relating to the acquisition of the property and any adjusting entries The Jati Bhd. has e determined ty or owner model current assets. ve purposes mange Required: rtion of the s. i 2 Refer to Question 1. Now assume that Mentari Bhd, applies the fair value model to account its investment property instead. auntan and accounted Plant and and the Required: Prepare all journal entries relating to the acquisition of the property and any adjusting entries required at 31 December 2018 and 2019. han lanned out its building to BB Bhd. under an operating lease for 5 years the building was RM20 million. The PM