q1 and 2

1 Jati Bhd. leased a 20-storey building from MPPJ with the intention to earn rental income. owner- The building has been leased to Jati Bhd. for 10 years and it was classified as a finance lease. Jati Bhd. has been given an option to purchase the building after 10 years for an amount that will be determined by MPPJ at the end of the lease term. erty Explain whether the building should be accounted for as an investment property or (a) owner-occupied property (b) Ho is the building recognized in the financial statements of Jati Bhd.? (c) If Ja hd. decides to use the building for warehousing its goods and administrative purses after five years, explain how the decision affects the account of Jati Bhd. Explain how a company accounts for a building leased under a finance lease if one portion of the building is used to earn rentals and another portion is used for administrative purposes 2 hmittod a list of its pronerties (land and building) in