On 1 January 2021, Sinar Bhd. purchased a 10-storey building in Jasin, Melaka for RM2 million. The estimated useful life of the building is 25 years. 7-storey of the building are held for supply of goods and services to its customers. The remaining 3-storey are leased out to tenants. According to the sale and purchase agreement of this building, each storey can be sold or leased out separately. Cost to PPE Cost to I Required: Illustrate the accounting treatment of the building in accordance to the requirements of MFRS 140 Investment Property. (8 marks) [TOTAL: 25 MARKSI 300 Dr M Cr Cash QUESTION 2 On 1 January 2021, DPPS Bhd. (DPPS) purchased a new machine, Machine A, for cash of RM3,000,000 each. Another machine, Machine B was purchased on 1 July 2021 for cash of RM3,000,000. Both Machine A and Machine B have an expected life of five years and RM200,000 residual value. Depreciation is computed based on time-apportioned basis. Both machines are entitled to the government grants. DPPS received a 60% grant towards the cost of each machine on the date of purchase. DPPS Bhd.'s accounting policy for government grants is to treat them as deferred income and release them to income over the life of the asset to which they relate. a) On 31 December 2021, it is found that DPPS can no longer fulfil the requirements of the government of one of the machines, Machine A and hence DPPS had to repay the grant for Machine A in full on 31 December 2021. The accounting year end for DPPS is 31 December each year. Required: In relation to MFRS 120 Government Grants: 2 Dr grant Cr Cash. Dep grant ( Prepare the journal entries to record the grants, depreciation, and the repayment of the grants from 1 January 2021 until 31 December 2021. (15 marks) Prepare the extracts of financial statements of DPPS for the year ended 31 December 2021. (10 marks)