QUESTION 1 (15 MARKS: 27 MINUTES) Since its establishment in 2010, MaxiPro Living Bhd has been progressing steadily towards being a promising manufacturer and exporter of furniture products. The company is located in Ipoh, Perak. In 2018, the company acquired a 10-storey office building for RM75,000,000 to be leased out under operating lease. It is estimated that the building will provide benefits to the company over its useful life of 40 years. At the end of 2018, the fair value of the building was RM71,000,000. In addition, the company has a three-floor building located in the city center of Ipoh as its head quarter office. The cost of the building was RM30,000,000 and the depreciation rate of the building was 4%. The building has been occupied for five years and the remaining useful life of the building is 20 years as at the end of 2019. On 1 July 2020, the management of company decided to relocate the head quarter office to Kuala Lumpur and the building was rented to a third party. Based on the professional appraiser's valuation, the market values of the company's properties are: Property Fair value as at 31 December 2019 (RM) 65,000,000 Fair value as Fair value as at 31 December 2020 (RM) at 1 July 2020 (RM) 68,000,000 24,000,000 22,000,000 10-storey office building Three-floor building Additional information: 1. The company uses cost model for property, plant and equipment (PPE) and fair value model for its investment property. 2. Financial year end for the company is 31 December each year. REQUIRED: (Round all numbers to the nearest RM) (a) (b) (c) Prepare all related journal entries for the 10-storey office building for the years 2019 and 2020. (3 Marks) Prepare all related journal entries for the three-floor building for the years 2019 and 2020. (8 Marks) Assume that on 1 July 2021, MaxiPro Bhd sold the three-floor building for RM18,500,000. Prepare the related journal entries. (2 Marks) (d) Discuss the impact of Covid-19 pandemic on the investment properties price in Malaysia. (2 Marks)