PART 3 Mr. Johan recalled from the company's book related to the acquisition of major assets for the company. He wants to let his staff analyse the following transactions related to the company's operation: Date Events Year 2017 1 June Acquired a piece of land with an old factory building, Lampu Terang Bhd paid RM100,000 cash and the balance is to be paid by signing a 5-year, non-interest bearing note with a present value of RM526,000. Lampu Terang Bhd intended to scrap the old building and construct a new one. 5 June Paid RM1,000 for real estate taxes, RM2000 real estate agent commission fees and RM1.500 for title expenses. 10 June Paid RM 10,000 for the cost of clearing the land. 20 June Paid RM5,000 for the razing and excavation cost for the new factory building. 25 June Received RM10,000 from residual value of demolished building, 1 July Paid RM15,000 for the first payment on architect fees. 1 December Paid RM25,000 for installation of electricity, telephone and water supplies for the building. 15 December Paid RM30,000 for the final payment on architect fees. Paid RM20,000 for installation fees and construction of fences around the property. Year 2018 1 January Purchased on account ten (10) heavy duty fully embroidery industrial sewing machines with FOB shipping point. The list price for each machine is RM25,000 and a trade discount of 20 percent was approved. Total freight and insurance cost while in transit was RM10,000. January Paid RM 20,000 for title expenses, moving and installing the new sewing machines. 4 January Paid RM 1,000 each for 5 technicians to inspect and test the newly acquired sewing machines. 5 January Paid RM15,000 for the first year insurance premium for the sewing machines. 7 January Purchased a truck with a list price of RM200,000 and received a discount of 5 percent. 7 January Paid RM6,000 for titic transferred and related costs for the truck. 30 June Paid RM2,000 for repair and maintenance costs for sewing machines. Additional information: i. Total cost of materials, labour and overhead costs for the construction of the new factory were RM 250,000, RM100,000 and RM50,000 respectively. ii. The cost of parking lots and driveways were RM65,000. Interest cost to be capitalised for the borrowing costs for the construction of the building were RM10,000 iv. The factory building was fully equipped and is used on 1 January 2018. QUESTION 1. Determine how many TYPES of assets do Lampu Terang Bhd has. Can these assets be considered as Property Plant and Equipment? Discuss your answer in relation to the conceptual framework, elements of financial statement and MFRS 116 Property Plant and Equipment. 2. What are the recognition criteria for property, plant, and equipment in accordance with MFRS 116 Property Plant and Equipment? 3. Determine the initial cost for each of Lampu Terang Bhd assets classified as Property Plant and Equipment (PPE). Determine which of the PPE assets can be depreciated. 5. Determine the appropriate depreciation expense for Lampu Terang Bhd's assets assuming that the useful life of truck and sewing machines are estimated to be 10 years while other tangible noncurrent assets are 50 years