QUESTION 2

On 31 January 2021, MCB Bhd sold its old factory for RM3,000,000. The factory was bought 10 years ago at cost of RM3,300,000. The useful life of asset expected to be used for 30 years.

a)	Justify whether MCB Bhd can derecognise its old factory from its Statement of Financial Position with the requirement as stipulated in MFRS116 Property, Plant, and Equipment. (5 marks)
b)	Prepare the journal entries for disposal of the old factory building. (5 marks)