Note: Depreciation on motor vehicles is treated as selling and distribution expense while depreciation for other property, plant and equipment to be treated as administrative expense. It is the policy of the company to charge full depreciation in year of acquisition and none in the year of disposal. b. On 30 June 2022, one unit of the building that is used as store was lost in a fire and totally damaged. The company received a sum of RM100,000 from insurance company for compensation. The building was acquired on 1 July 2017 at RM300,000. On 1 August 2022, the company started the construction work to build a new store and completed the construction on 1 December 2022. The following costs were incurred for the construction: c. On 30 December 2022 , the professional valuer determined that the fair value of land was RM1,600,000. The management decided to incorporate the revalued amount in the company's book. Required: i. Explain the components of initial cost of self-constructed property, plant and equipment in accordance with MFRS116 Property, plant and equipment. ii. Compute the initial cost for the construction of building by the company during the year. iii. Calculate the current year's depreciation charges for the building. iv. Recommend the company on the accounting treatment for the derecognition of the damaged building. v. Advise the accounting treatment and the journal entries for the revaluation of land on 30 December 2022. Note: Depreciation on motor vehicles is treated as selling and distribution expense while depreciation for other property, plant and equipment to be treated as administrative expense. It is the policy of the company to charge full depreciation in year of acquisition and none in the year of disposal. b. On 30 June 2022, one unit of the building that is used as store was lost in a fire and totally damaged. The company received a sum of RM100,000 from insurance company for compensation. The building was acquired on 1 July 2017 at RM300,000. On 1 August 2022, the company started the construction work to build a new store and completed the construction on 1 December 2022. The following costs were incurred for the construction: c. On 30 December 2022 , the professional valuer determined that the fair value of land was RM1,600,000. The management decided to incorporate the revalued amount in the company's book. Required: i. Explain the components of initial cost of self-constructed property, plant and equipment in accordance with MFRS116 Property, plant and equipment. ii. Compute the initial cost for the construction of building by the company during the year. iii. Calculate the current year's depreciation charges for the building. iv. Recommend the company on the accounting treatment for the derecognition of the damaged building. v. Advise the accounting treatment and the journal entries for the revaluation of land on 30 December 2022