Question 1 A. MORGAN Bhd acquired a building at a purchase price of RM6,050,000 on 2 January 2013. The legal fees incurred to acquire the building amounted to RM500,000. The acquisition is eligible for a trade discount of RM50,000. The building has 20 floors and all floors are rented out. The fair value of the building on 31 December 2014 and 31 December 2016 were RM6,720,000 and RM6,600,000 respectively. Depreciation on building is on a straight line method over 50 years. Required: Calculate the carrying value of the building as at 31 December 2014 and 31 December 2016, if Morgan Bhd adopts cost model in accordance with MFRS 140 Investment Property. (10 marks) B. On 1 January 2016, AME acquired a property for investment purposes. The cost of the building was RM10 million and the economic life was estimated to be 50 years. At the end of year 2016, the fair value of the building was RM11.5 million. The fair value on 31 December 2017 was RM10.8 million. I Required: Prepare the journal entries to realize gain and loss as at 31 December 20176 and 31 December 2017, assuming the above building qualified as Investment property under MFRS 140 and using the fair value model. (6 marks) C. On 1 January 2017, Tira Bhd acquired an investment property at a cost of RM5,000,000. Legal and other expenses amounted to RM250,000 incurred in relation to the purchase of property. At the end of the second quarter, an independent assessor valued the property at RM6,000,000. The economic life of the property is 20 years. Required: Discuss the accounting treatment for the investment property for the year ended 31 December 2017 if Tira Bhd has adopted the fair value