QUESTION 1 (30 MARKS) One of the famous businesses selling hardware around Kedah, ZikZak Sdn Bhd purchase three (3) equipment for the business used on 1 February 2020 costing RM54,000 each. The business accounting period close on 31 December every year. All the cost while purchasing the equipment are stated below: Transportation cost (for all equipment) Import Duties (for all equipment) Repair and maintenance cost (per equipment) Installation cost (per equipment) RM RM4,000 RM2,000 RM1,500 RM600 All cost incurred has been paid by ZikZak 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% per annum for useful life of 5 years. Required: a. Briefly explain whether the equipment can be classified in accordance with MFRS116 Properties, Plant and Equipment? (4 marks) (CLO2:PL07:02) b. How much will be the initial cost for all equipment purchased by ZikZak Sdn Bhd? (Show working) (7 marks) (CLO2:PL07:C2) c. Calculate the depreciation expenses for the year 2020. (4 marks) (CLO2:PL07:C2) d. Prepare journal entries for the above transactions until 31 December 2020. (6 marks) (CLO2:PLO7:C2) e. ZikZak Sdn Bhd acquired a building at a cost of RM12,800,000 on 1 January 2017 the policy of the company to depreciate its building using the straight-line method over 50 years and to apply the revaluation model for its subsequent measurement. On 31 December 2020, the fair value of the building was determined to be RM22,400,000 Required: i. Determine the surplus or deficit on revaluation of the building as at 31 December 2020. (7 marks) (CLO2:PLO7:C2) ii. Prepare journal entries to record the surplus or deficit on revaluation as in e (i) above. (2 marks) (CLO2:PLO7:C2)