Question 1 (20 Marks)

One of the famous businesses selling hardware, ACB Hardware Sdn Bh purchased three (3) equipment for the business used on 1 February 2022 costing RM64,000 each. The business accounting period close on 31 December every year. The following costs were incurred for the purchased equipment (the costs

are incurred for all equinment unless stated otherwise

RM

Transportation cost

RM4,000

Import Duties

RM2.000

Repair and maintenance cost (per equipment)

RM1,500

Installation cost (per equipment)

RM600

All cost incurred has been paid by ACB Hardware Sdn Bhd upon the delivery of the equipment.

The business depreciation policy using straight line method, calculated on the monthly basis at rate of 20% ber annum for usefullite of tive vears

Required:

a. Determine whether the equipment can be classitied as an asset in accordance to M-RS116 Probertv.

Plant and Equioment

(4 marks)

(CLO2:PLO2:C3)

b. How much will be the initial cost for all equipment purchased by ACB Hardware Sdn Bhd? Show

vour computation.

(6 marks)

(CLO2:PLO2:C3)

c. Calculate and record the depreciation expenses for the vear 2022

(4 marks)

(CLO2:PLO2:C3)

d. Prepare an extract of statement of financial position as at 31 December 2022.

(2 marks)

(CLO2:PLO2:C3)

e. ACB Hardware Sdn Bhd acquired a building at a cost of RM12,800,000 on 1 January 2019 the policy of the company to depreciate its building using the straight-line method over 30 years and to apply

the revaluation mode for its subsequent measurement.

On 31 December 2022, the fair value of the building was determined to be RM22,400,000.

Required:

Determine and record the surplus or deficit on revaluation of the building as at 31 December 2022.

One of the famous businesses selling hardware, ACB Hardware Sdn Bhd purchased three (3) equipment. for the business used on 1 February 2022 costing RM64,000 each. The business accounting period close on 31 December every year. The following costs were incurred for the purchased equipment (the costs are incurred for all equigment unless stated otherwisel: All cost incurred has been paid by ACB Hardware Sdin Bhd upon the delivery of the equipment. The business depreciation policy using straight line method, calculated on the monthly basis at rate of 2005 per annum for useful life of five vears. Required: a. Determine whether the equipment can be classified as an asset in accordance to MFRS116 Property. Plant and Equipment. (4 marks) [C.02:PLO2.C3) b. How much will be the initial cost for all equipment purchased by ACB Hardware Sdn Bhd? Show yout computation. (6 marks) [CIO2:PLO2.C3) c. Calculate and record the depreciation expenses for the year 2022. (4 maks) (CLO2:PLO2:C3) d. Prepare an extract of statement of financial position as at 31 December 2022. (2 marks) (CLO2-PLO2.(3) e. ACB Hardware Sdn Bhd acquired a building at a cost of RM12,800,000 on 1 January 2019 the policy of the company to depreciate its building using the straght line method over 30 years and to apply the revaluation model for its subsequent measurement. 1 On 31 December 2022, the fair value of the building was determined to be $M22,400,000. Required: Determine and record the surplus or deficit on revaluation of the building as at 31 December 2022 (4 marks) (CLO2:PLO2:C3)