On 31 August 2017, Granite Bhd completed the construction of an office building at a total cost of RM5,500,000. The estimated useful life of the office building was 50 years. The office building was immediately rented out upon completion. The rental received represents the market rental. Granite Bhd provides security and maintenance to the occupants of the office building at RM12,000 per year. However, these services are insignificant to the whole arrangement. The fair value of the property as at 31 December 2019 and 31 December 2021 was RM5,700,000 and RM6,100,000 respectively. On 1 March 2022, the office building was sold at RM 6,000,000. It is the policy of the company to adopt the fair value model in measuring its investment property and the revaluation model in measuring its property, plant and equipment. 5. Which of the following statement is correct related to the initial recognition of the office building on 31 August 2017? a. The building is classified as an investment property under MFRS 140 . b. The building is classified as property, plant and equipment under MFRS 116 . c. The building can be classified under both, that is, as property, plant and equipment under MFRS 116 or investment property under MFRS 140. d. The building cannot be classified either as property, plant and equipment under MFRS 116 or investment property under MFRS 140. (2 marks) 6. What are the journal entries to record the transaction for the year ended 31 December 2019? a. Debit Statement of Profit or Loss - loss on valuation RM200,000 Credit Investment Property RM200,000 b. Debit Statement of Profit or Loss - loss on valuation RM 400,000 Credit Investment Property RM 400,000 c. Debit Investment Property RM200,000 Credit Statement of Profit or Loss - gain on valuation RM200,000 d. Debit Investment Property RM400,000 Credit Statement of Profit or Loss - gain on valuation RM400,000 (2 marks)