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Please help me i will give good rating Maiu Bhd. opening non-current asset register details on 1 January 2021 include the following: Cost Description Accumulated
Please help me i will give good rating
Maiu Bhd. opening non-current asset register details on 1 January 2021 include the following: Cost Description Accumulated Useful life Depreciation (years) amortization RM RM 20,000,000 150,000,000 1,800,000 5,000,000 2,000,000 4,000,000 Freehold land Freehold buildings Motor vehicles Plant Franchise Brand 10,000,000 720,000 3,000,000 50 5 - The following transactions have occurred throughout the year 2021: (i) Throughout the year, Maju Bhd. incurred regular maintenance costs of RM48,000 for its motor vehicles. On 1 January 2021, there was major repair on a plant amounting RM500,000, which increase the efficiency of the plant. The remaining useful life of the plant is 6 years. (ii) Maju Bhd. acquired a new freehold building on 1 July 2021 at the cost of RM49 million. The company also incurred additional costs of RM1 million that were necessary to prepare the building for its intended use. (iii) The surplus on revaluation of the freehold land on 31 December 2021 was RM3 million, which RM1 million of the surplus was due to previous deficit. The company adopt the revaluation model for its freehold land. (iv) One of the motor vehicles acquired on 1 January 2019 for the cost of RM200,000 and accumulated depreciation of RM80,000 (as at 1 January 2021) was disposed on 30 June 2021 for RM60,000. (v) The franchise is renewable every ten years with minimal cost. Maju Bhd. has the intention to keep renewing the franchise and all evidence indicates that the franchise will generate cash flows for an indefinite period. (vi) Initially, the brand is expected to generate net cash inflows for indefinite periods of time. However, in 2021 there was indication that the reputation of the brand has decreased drastically and therefore, the ability of the brand to bring net cash inflows to the company will be limited to another 10 years only. Maju Bhd. applies straight-line method to amortize its intangible assets. (vii) The depreciation for property, plant and equipment (PPE) is provided based on the ownership of the assets during the year. Maju Bhd. applies straight-line method to depreciate its PPE. Required: (a) Show the journal entries for the revaluation of freehold land and the disposal of plant and equipment. (b) Calculate the depreciation for freehold building, motor vehicles and plant. (c) Prepare the schedule of the property, plant and equipment (cost and accumulated depreciation) that will be disclosed in the notes of the accounts on 31 December 2021. (d) Prepare the extract of Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2021. ||Step by Step Solution
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