Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Speedy Bhd is a company engaged in trading of motor vehicles. With increasing orders received by the company since its incorporation, Speedy Bhd is

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Speedy Bhd is a company engaged in trading of motor vehicles. With increasing orders received by the company since its incorporation, Speedy Bhd is optimistic of a better sales growth in the future. The company closes its account on every 31 December. In order to meet customers' demand for its product, the company acquired the plant assets of Jupiter Sdn Bhd on 2 March 2015. The plant assets consist of: Land Building Warehouse Cost (RM) 3,200,000 4,000,000 600,000 Speedy Bhd also incurred the following expenditure in cash between 15 March and 15 May 2015: Ordinary repairs to the building Additions to the building RM 13,000 RM 200,000 The building was estimated to have useful life of 10 years with no residual value. The company used straight-line depreciation method for building and the company policy is to recognise depreciation to the nearest whole year where assets acquired during the first six-month are considered held for the entire year while assets acquired during the last six-month are not considered in the depreciation computation. In early 2018, the company replaced the marble floor with wooden floor and the cost was RM180,000 which extends the estimated life of the building by two years. At the end of 2019, the building was revalued at RM3,500,000 by the qualified appraisal agent. On 30 December 2020, 1/4 of the building was sold to MJ Sdn. Bhd. for cash consideration of RM1,500,000. The company also constructed a building on 1 April 2017. A piece of land was purchased for the building construction with a cost of RM130,000. On 1 April 2017, the company paid RM30,000 for architect fees. The excavation work began during the first week in April with payments made to the contractor in 2017 as follows: Date 30 June 2017 21 August 2017 1 December 2017 Amount of payment (RM) 120,000 180,000 90,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations and Evolutions

Authors: Michael R. Kinney, Cecily A. Raiborn

9th edition

9781285401072, 1111971722, 1285401077, 978-1111971724

More Books

Students also viewed these Accounting questions

Question

Cite common obstacles to reaching your goals.

Answered: 1 week ago