Property, Plant and Equipment 10. Mega Consultancy conducts its activities from two properties, a head office in Kuala Lumpur and another property in Kajang used as a staff training centre. Both properties were acquired on 1 January x1 and their economic lives were estimated to be 25 years with no residual value. Mega Consultancy has a policy of treating its land and buildings as separate assets and carrying them at fair value. On 30 June x3, the fair values of the properties are as follows: Land Building RM RM Head office Cost at 1.1.x1 1,000,000 2,400,000 Fair value at 30.6.x3 1,400,000 2,700,000 Training centre Cost at 1.1.x1 600,000 1,800,000 Fair value at 30.6.x3 700,000 1,600,000 The training centre was damaged due to flash floods. The valuer stated that the expected useful life of the training centre based on its current use will be another ten years only. The expected useful life of the head office remains unchanged. Required: Prepare extracts of the financial statements of Mega Consultancy in respect of the two properties for the year to 31 December x3. 11. Twist operates in the fashion industry and has a financial year-end of 31 May x6. The company sells its products in department stores and creates its own selling areas within the department stores which are called 'model areas'. Twist pays for all the costs of the 'model areas' including design, decoration and construction costs. These areas are used for approximately two years after which the company has to dismantle the 'model areas'. The costs of dismantling are approximately 20% of the original construction