Question 5 (a) SDS Bhd has a funded defined benefit plan for its employees. On 1 January 2020, the fair value of the plan assets was RM1, 080,000 and the present value of the obligation was RM750,000. It was recorded that the past service cost of RM3,600 was the results of changes introduced during the year ended 31 December 2020. During the year of 2020, the entity had contributed RM187,500 to the scheme. The current service cost was RM75,000 and the payment to its retired employees during the year amounted to RM97,500. The entity uses a discount rate of 10% and expects its return on the plan assets to be 12%. Required: (i) Explain the differences between Defined Contribution Plan and Defined Benefit Plan. (5 marks) (ii) Compute the defined benefit costs that should be recognised in the statement of profit or loss for the year ended 31 December 2020. (3 marks) (b) On 1 January 2021, RAMF Bd entered into an agreement to sell machine that fair value of RM100,000 to WK Bhd. Delivery of the machine is expected on 31 April 2021. WK Bhd offered to settle the purchase by cash or by issuing share options 50,000 shares of WK Bhd. If RAMF Bhd chooses the share alternative, the options will be exercisable by 31 December 2021 at RM4 per share. The fair value of the share options on 1 January 2021 was RM2.10. RAMF Bd agreed to accept shares options instead of cash. Required: (i) State two (2) possible reasons for RAM Bhd's decision. (4 marks) (il) Explain how WK Bd will record the acquisition of the machine. (5 marks)