& Show Statement of Financial Position for freehold land and leasehold building land

Question 2 Mangkuk Tingkat Inc. adopts a revaluation model for their property, plant and equipment measurement. They have two properties in Kuala Lumpur as shown below with their costs and fair value for the year ended. Freehold Land in Bangsar Leasehold Building Land in RM-000 Cheras RM 000 Cost as at 31 December 2016 11,000 13.100 Fair value as at 31 December 11.200 11,800 2016 Fair value as at 31 December 10,000 12.200 2017 The leasehold building was acquired in 2010 and has a 2 percent depreciation rate per annum On September 2017, Mangkuk Tingkat Inc. exchanged equipment with Paku Besi Co. Paku Besi paid Mangkuk Tingkat RM5,000 in cash for the exchange. The information on the exchange are as follows: Mangkuk Tingkat Inc. Paku Besi Co. Original cost RM 120.000 RM 140,000 Accumulated depreciation 55,000 63.000 Fair value 75.000 70,000 The exchange has commercial substance for both companies. Required: (a) Show the relevant joumal entries to record the adjustments required on the revaluation for the year ended 31 December 2016 and 2017 (9 marks) (b) Show the extract of Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2016 and 2017. (2 marks) Question 2 Mangkuk Tingkat Inc. adopts a revaluation model for their property, plant and equipment measurement. They have two properties in Kuala Lumpur as shown below with their costs and fair value for the year ended. Freehold Land in Bangsar Leasehold Building Land in RM-000 Cheras RM 000 Cost as at 31 December 2016 11,000 13.100 Fair value as at 31 December 11.200 11,800 2016 Fair value as at 31 December 10,000 12.200 2017 The leasehold building was acquired in 2010 and has a 2 percent depreciation rate per annum On September 2017, Mangkuk Tingkat Inc. exchanged equipment with Paku Besi Co. Paku Besi paid Mangkuk Tingkat RM5,000 in cash for the exchange. The information on the exchange are as follows: Mangkuk Tingkat Inc. Paku Besi Co. Original cost RM 120.000 RM 140,000 Accumulated depreciation 55,000 63.000 Fair value 75.000 70,000 The exchange has commercial substance for both companies. Required: (a) Show the relevant joumal entries to record the adjustments required on the revaluation for the year ended 31 December 2016 and 2017 (9 marks) (b) Show the extract of Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2016 and 2017. (2 marks)