QUESTION 1

1. On 1 January 2019, DXN acquired a property for investment purpose. The cost of the building was RM10 million and the economic life was to be 50 years. At the end of year 2019, the fair value of the building was RM11.5 million. The fair value on 31 December 2020 was RM10.8 million. The financial year-end is 31 December.

Required:

Show the journal entries to record the above transaction for the year 2019 and 2020 if the company adopts ..

a) cost model

b) fair value model.