Question 14 You are working in the accounting department of Rozzalia Bhd, a company that specializes in the production and sales of products related to roselle. You have been asked by your supervisor to review several issues related to decisions made on the financial statement items of the company during the financial year 2015 a) The followings are the situations that require your consideration: On 1 January 2015, the company places an order for a machine from a company in Japan. The delivery of the machine is made on 31 January 2015. The list price of the machine is RM300,000 with a trade discount of 1% on the initial list price. Import duties and taxes amounted to RM15,000. The following costs are also incurred in relation to the purchase Delivery and transport costs from Port Klang to the factory amounted to RM2,500 Installation and commissioning costs amounted to RM11,500 - Administrative costs incurred in processing the acquisition amounted to RM5,000 The expected useful life of the machine is 30 years. i. On 1 July 2015, the company purchases a land for RM200,000. The land is to be used to plant the roselle (Hibiscus sabdariffa), to produce raw material for the production of the company's products. To secure the purchase, the company incurs costs of RM20,000 for the legal fees. It is the company's practice to restore land used as plantation area after the end of the expected usage of the land. Thus, at the end of the land's 10-year useful life, the company will restore the land for environmental sustainability. The present value of the cost of land restoration is estimated to be RM50,000 The company uses straight line depreciation method for all property, plant and equipment. The company uses cost model for all property, plant and equipment. Required: (Assume that all the payments are made by cash). .) Prepare journal entries for the initial recognition of items 1 and 2 above for Rozzalia Bhd Maram Bhd acquires a production equipment to be used in producing the company product line, a 4D ultrasound machine. The production equipment is expected to be u for five years before being scrapped. b) Required: By citing relevant accounting standards, suggest the accounting treatm ent for the assets