Question 15 mudera Bhd. started business in early 2017. In the first few mon iness in early 2017. In the first few months of its operation e construction of a building. Operating equipment was . acquired a talled and was ready for use. The company sig Bhd. of RM1,000,000. The a self-contructed buildin e company used most of the loan to buy land, equipme d a 10 year long term loan with Bank Abadi and to finance Recently, the company hire records of the company. After a few p the following list of cost incurred a young account executive, Miss Finna, to maintain accounting roces s of data gathering and analysis of documents, she h No. Description RM 1. Costoflandpurchasedasabuilding site. ) 2. Paid architect's fee for design of new building. 170,000 23,000 28,000 4. Paid tax on the land purchased as a building site in (O) 6. Made the initial payment to the building contractor 8. aid for demolition of old building on building site purchased in (D). Paid excavation cost for the new building 1,700 15,000 250,000 Ved from sale of salvaged materials from demolishing the old building 350,000 22,000 Made final payment to the building contractor Paid interest on loan used for construction of building Medical cost for a worker involved in accident during the construction of 10,000 building Made payment for the purchase of equipment. (El 40,000 1,900 4,200 II. 12. Paid freight on the purchase ofequipment. 13. Paid for the installation of equipment 14. Paid for repair of damaged equipment due to poor handling during2,700 installation 2,500 15. Paid for a three-day training session for employees to learn how to use the equipment. Required: a) Determine the cost to be capitalized in accordance with MFRS 116 for the following types of property, plant and equipment ) Land ii) Building ii) Equipment b) Prepare journal entries for the initial recognition of land, building and equipment above assuming all payments are made by cash