QUESTION 2 (20 MARKS) A. DENCO Bechad owns a four-storey property which was purchased on 10 January 2019. The top floor is used as DENCO's office, whilst the other three floors are rented out to several tenants. Explain how the property should be accounted for. (4 marks) B. DEKA Bhd has purchased a three-storey property in early January 2017 for a total cost of RM3,000,000. The property is rented out to JKF Enterprise with an annual rent of RM210,000. The fair value of the property is as follows: Financial year ended 31 December 2017 31 December 2018 31 December 2019 Fair value RM3,500,000 RM3,500,000 RM3,250,000 The useful life of the property is estimated to be 40 years. If the cost model is used, depreciation is calculated using the straight-line method. Required: a) Explain the accounting treatment for the property at the end of each accounting period, if the company uses: (1) Cost model (ii) Fair value model. (7 marks) b) Assuming the property was sold for RM3,200,000 on 8 January 2020, show the journal entry for the sale, if the company uses: 0 Cost model. (1) Fair value model. (4 marks)