QUESTION $1$

Bina Saja Bhd was established in year $2010,$ with the main office in Bertam Perdana, Seberang Perai. The company involves in real estate activities by buying lands and construct housing properties. The financial year end for the company is $31$ December each year. The company uses cost model for property, plant, and equipment $($PPE$)$ and fair value model for its investment property.

The company has a $5-$storey building located in Bertam Perdana as its head quarter office. It was purchased in January $2010.$ The cost of the building was RM$50,000,000.$ It is estimated that the building will provide benefits to the company over its useful life of $50$ years. On $1$ October $2022,$ the management of the company decided to move to a new building in Kulim, Kedah. The $5-$ storey building in Bertam was then rented out. Only $5\%$ of the building is used for office purposes which was considered insignificant. Based on the professional appraiser$$s valuation, the market value of the building on $1$ October $2022$ was the same as the carrying amount while the market value on $31$ December $2022$ was RM$42,000,000.$

In April $2018,$ the company acquired a piece of land in Sungai Dua for RM$2,500,000.$ The company keeps the land for capital appreciation. Due to the COVID $19$ pandemic, the fair value of the land on $31$ December $2021$ was RM$2,100,000.$ However, the fair value of the land was improved to RM$2,600,000$ on $31$ December $2022.$

Bina Saja Bhd also has a $3-$storey office building in Permatang Pauh and it is rented out to another company. The building was purchased on $1$ June $2015.$ The fair value of the building at the end of $2020$ and $2021$ were RM$65,000,000$ and RM$67,900,000.$ In $2022$ a new city center was developed in Seberang Jaya resulting to the drop in demand for rental lots in the current building. On $1$ July $2022,$ the company sold the building at a price of RM$65,700,000.$

REQUIRED: $($Show all workings and round all numbers to the nearest RM$)$

$($a$)$ Prepare related journal entries for the $5-$storey building in Bertam Perdana for the year $2022.$

$($b$)$ Prepare related journal entries for the land in Sungai Dua for the years $2021$ and $2022.$

$($c$)$ Prepare related journal entries for the $3-$storey building in Permatang Pauh for the years $2021$ and $2022.$

$($d$)$ Briefly explain the accounting treatment for the following:

i$.$ The land in Sungai Dua, if the company decided to build its own office building on the land.

ii$.3-$storey building in Permatang Pauh if the company decided not to sell, instead it is rented out to the other company which is the member of the same parent company.