QUESTION 2 On 1 January 2022, the book value balances of the property, plant and equipment section of Seluang Padu Bhd's are as follows: During 2022, the following transactions occurred: 5 January 2022 Land with a small building was acquired by issuing 6,000 units of shares. Seluang Padu Bhd share is actively traded. The market value of the share was RM150 per share. Shortly after the acquisition, small building was demolished at a cost of RM25,000. Another cost of RM7,000 was incurred to clear the land. The cost of RM26,000 was paid for paving the parking lots and another RM7,000 for fences. Both parking lots and fences have an estimated useful life of 10 years and the straight line method is used to depreciate the asset. Additionally, Seluang Padu Bhd paid RM3,000,RM1,000 and RM20,000 for commission on real estate agent, fee for title search and lawyer's fee to close the purchase deal, respectively. 1 June 2022 A group of new machines was purchased. The invoices price of the machines was RM150,000. Credit terms were 1/10, n/30, FOB shipping point. Transportation cost from the manufacturer to Seluang Padu Bhd was RM3,600, which included RM600 for insurance. 1 November 2022 Seluang Padu Bhd bought an equipment and paid a total of RM605,800. The supplier's invoice showed that this sum was made up of the following items: 3 REQUIRED: (a) Based on MFRS 116 Property, Plant and Equipment, calculate the cost of land, land improvement, machine and equipment. (b) Prepare the journal entries to record the acquisition of land, land improvement, machine and equipment in accordance with MFRS 116 Property, Plant and Equipment. Show your workings. Qayfiq Bhd intended to expand its business. In order to do that, the company acquired a piece of land for the use of constructing a new administrative building. The land was acquired together with an old abandoned building. Details on the costs related to the land and building construction are as follows: Professional and legal fees consist of expenses relating to transfer of ownership of land totalling RM15,000, architect fees of RM21,000 and also title search fee of RM1,000. Included in the general expenses are the salary for administrative staff amounting to RM220,000 while the other RM30,000 is for the personnel that guarding the construction site. To accommodate the mission of improving productivity and efficiency, the company also purchased new specialised machine and equipment with a combined price of RM 180,000 by issuing 50,000 units of ordinary share at RM3.60 per share. Based on a reliable source, the market value of the machine and the equipment is RM150,000 and RM50,000 respectively. Other costs paid during the acquisition of the machine comprised of delivery cost at RM2,500, installation cost of RM4,500 and trial run expense prior to actual production of RM6,500. The company also held an annual technician training and safety program with a cost amounted to RM12,250. Beside that, Qayfiq Bhd exchanged an old vehicle with a cost of RM140,000 for a new vehicle with a fair market value of RM145,000. The accumulated depreciation for the old vehicle is RM100,000 with an estimated fair value of RM35,000. Qayfiq Bhd also pay cash RM110,000 as an addition to the transfer of the old vehicle. REQUIRED: (a) In accordance to MFRS 116 Property, Plant and Equipment, determine the costs of (i) land, (ii) land improvement, and (iii) building incurred by 2 Qayfiq Bhd. (b) Calculate the costs of machine and equipment accordance to MFRS 116 Property, Plant and Equipment and prepare the relevant journal entry (ies) for these acquisitions. Show your calculations. (c) Prepare the journal entries to record the exchange related to the vehicle assuming that the exchange has commercial substance. Show your calculations