QUESTION 2 Perdana Bhd purchased a machine costing RM60,127 on 1 July 2016. Initial payment of RM50,127 was paid on that date and the balance of RM10,000 with the present value of RM8,264 was paid on 30 June 2018. Perdana Bhd had also paid the installation cost of RM10,000 on the purchase date. Depreciation of the machine is calculated on straight-line method and on yearly basis over its estimated useful lives of five years. The machine is to be dismantled at the end of its useful lives and the cost of dismantling is estimated to be RM10,000 with the present value of RM6,209. On 2 July 2018, one component of the machine was badly damaged and already been replaced. The carrying value of the component is RM11,355. The cost of the new component is RM15,000. With the replacement, the machine can operate as usual and at the same time can reduce the operating costs. On 4 July 2019, Perdana Bhd spent a total of RM6,000 for the routine maintenance of the machine The present value of future payments to be discounted at 10 percent per annum. The company's financial year end is on 30 June every year. Required: a. Discuss how the information of acquisition the machine is useful to the users of financial statements such as investors and lenders. (4 marks) b. Identify the amount that can be capitalised as the initial cost of the machine in accordance with MFRS 116 Property Plant and Equipment (2 marks) C. Prepare the relevant journal entries for the years ended 30 June 2017 and 30 June 2018. (10 marks) d. Explain the accounting treatments for the replacement of the component and the maintenance work on 2 July 2018 and 4 July 2019, respectively. (5 marks) e. Calculate the carrying amount of the machine as at 30 June 2020. (4 marks) (Total: 25 marks)