Question 1(a) Presented below is a schedule of property disposals for Jannah Berhad as at 31 December 2017: Cost RM400 Schedule of Property Disposals Accumulated Cash Depreciation Proceeds RM 000 RM 000 750 36 740 Fair Value RM 1000 750 Nature of Disposition 800 Land Building Warehouse 150 700 700 Take-over Demolition Destruction by fire Trade-in Contribution Sale 9 Machine Furniture Motor Vehicle 80 200 500 28 185 346 72 30 296 296 . The following additional information is available: Lund: On 15th February 2017, the company's land was taken over by the state government due to unimproved land held primarily as an investment. The government paid RM750,000 for the land. On 31" March, another parcel of unimproved land to be held as an investment was purchased by Jannah Berhad at a cost of RM780,000 Building: On 29 April 2017, land and building were purchased at a total cost of RM750,000, of which 20% was allocated to building. The building was then demolished and cash proceeds RM36,000 represented the nel proceeds from the demolition of the building Warehouse: On 3011 June 2017, the warehouse was destroyed by fire. The warehouse was purchase in January 2012 and had accumulated depreciation of RM160,000 at the time of fire. On 27 December, the insurance proceeds and other fund were used to purchase a replacement warehouse at a cost of RM20.00 Machine: On 26th December 2017, the machine was exchanged for another machine having a fair value of RM63,[X00 and cash of RM9,000 was received. The exchange constitutes a commercial substance.) Furniture: On 15 August 2017, the furniture was contributed to a charitable organization. No other contributions were made or pledged during the year Automobile: On 3" November 2017, the automobile was sold to Fazura, a shareholder. Required: (0) Prepure journal entries to reflect each of the disposals of Jannah Berhad's property, plant and equipment (12 marks) (ii) Based on your answers in (a), prepare an extract of Profit or Loss & Other Comprehensive Income for the year ended 31" December 2017 for Jannah Berhad. (6 marks) (iii) When does an asset is derecognised, as stated in MFRS 116 Property plant and equipment (2 marks) (Total : 20 marks) 2 Question 1(a) Presented below is a schedule of property disposals for Jannah Berhad as at 31 December 2017: Cost RM400 Schedule of Property Disposals Accumulated Cash Depreciation Proceeds RM 000 RM 000 750 36 740 Fair Value RM 1000 750 Nature of Disposition 800 Land Building Warehouse 150 700 700 Take-over Demolition Destruction by fire Trade-in Contribution Sale 9 Machine Furniture Motor Vehicle 80 200 500 28 185 346 72 30 296 296 . The following additional information is available: Lund: On 15th February 2017, the company's land was taken over by the state government due to unimproved land held primarily as an investment. The government paid RM750,000 for the land. On 31" March, another parcel of unimproved land to be held as an investment was purchased by Jannah Berhad at a cost of RM780,000 Building: On 29 April 2017, land and building were purchased at a total cost of RM750,000, of which 20% was allocated to building. The building was then demolished and cash proceeds RM36,000 represented the nel proceeds from the demolition of the building Warehouse: On 3011 June 2017, the warehouse was destroyed by fire. The warehouse was purchase in January 2012 and had accumulated depreciation of RM160,000 at the time of fire. On 27 December, the insurance proceeds and other fund were used to purchase a replacement warehouse at a cost of RM20.00 Machine: On 26th December 2017, the machine was exchanged for another machine having a fair value of RM63,[X00 and cash of RM9,000 was received. The exchange constitutes a commercial substance.) Furniture: On 15 August 2017, the furniture was contributed to a charitable organization. No other contributions were made or pledged during the year Automobile: On 3" November 2017, the automobile was sold to Fazura, a shareholder. Required: (0) Prepure journal entries to reflect each of the disposals of Jannah Berhad's property, plant and equipment (12 marks) (ii) Based on your answers in (a), prepare an extract of Profit or Loss & Other Comprehensive Income for the year ended 31" December 2017 for Jannah Berhad. (6 marks) (iii) When does an asset is derecognised, as stated in MFRS 116 Property plant and equipment (2 marks) (Total : 20 marks) 2