On $1$ April $2016,$ Amanah Berhad purchased a $25-$storey building and the whole building is

rented out to retailers. The cost of the building was RM$89,000,000\mathrm{.}00$ and the building is

expected to have a useful life of $40$ years with no salvage value. Amanah Berhad chooses to

measure its property using the cost model. The financial year$-$end for Amanah Berhad is $31$

December each year. Amanah Berhad uses a straight$-$line method to depreciate its noncurrent

assets. On $31$ December, Amanah Berhad recognized an impairment loss of

RM$125,000\mathrm{.}00$ for the building.

 

 

REQUIRED:

Explain how Amanah Berhad records the transaction in its book and prepare the necessary

entries to record all related transaction.