Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls don't handwriting L REQUIRED: Calculate the cost of land, land improvement, building and equipment based on MFRS 116 Property, Plant and Equipment. Please show
pls don't handwriting
L REQUIRED: Calculate the cost of land, land improvement, building and equipment based on MFRS 116 Property, Plant and Equipment. Please show your calculations." (14 Marks) QUESTION 1 (20 MARKS: 36 MINUTES) A. During the year 2020, Akasia Maju Bhd (AMB) purchased a piece of land with an existing building for RM1,125,000. The land was valued at RM1,050,000 and the building at RM75,000. AMB demolished the building and constructed a new building as headquarters on the site. The new building and land improvement are expected to last for 80 years with no residual value and the construction was fully completed by the end of the year 2020. The following represents the various items related to the project in year 2020: Items Lawyer's fee to close the purchase deale Cost of land fill and clearing Architect's fee Fencing around the land Cost of demolishing existing building Interest on financing of construction paid during construction Receipts from sale of demolition scraps Construction costs Landscaping (trees and shrubs) Parking lots and concrete walks on the property Insurance premium during construction periode Moving costs from old headquarters to new headquarters RM 22,500 18,000 120,000 60,000 97,500 282,000 15,000 1,200,000 30,000 180,000 18,000 150,000 To accommodate the mission of improving productivity and efficiency, the company also bought a new special equipment and made the following payments. Items Manufacturer's list price Trade discount Delivery charge Installation charge Additional components to increase capacity Service and maintenance Replacement parts Test runs Small spare parts RM 4,303,500 37,500 ..... 75,000 50.250 107,250 24,750 17,000 16,500 2,600 During the test runs, some samples were produced and sold. The proceeds from these samples amounted to RM15,000. cacat e 10Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started