Question B

The following is an extract property movement of Setia Kawan Sdn Bhd during the year ended 31 December 2018.

	Freehold Land	Plant and machinery
	RM	RM
Cost/Valuation	3,500,000	10,000,000
Less: Accumulated Depreciation	-	(3,975,000)
Net carrying amount	3,500,000	6,025,000

Additional information:

1. Freehold land consists of Land Ipoh and Land Beranang with carrying value of RM2,000,000 and RM1,500,000 respectively.
2. The market value as at 31 December 2019 for Land Ipoh is RM1,500,000 and Land Beranang is RM1,800,000.
3. The company adopts revaluation model. Revaluation reserve as at 31 December 2018 is RM500,000 for Land Ipoh and no changes to Land Beranang as at the date.
4. On 1 July 2019, one of the machines was sold for RM800,000. The machine was acquired on 1 April 2016 at a cost of RM1,000,000.
5. Depreciation is as follows:

Plant and machinery

Straight-line method at 10% on monthly basis

Required:

1. Write journal entries for the revaluation of Land Ipoh and Land Beranang on 31 December 2019.
2. Explain the accounting treatment for the disposal of the machine on 1 July 2019.
3. Calculate the net carrying amount of plant and machinery as at 31 December 2019.