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Superb Bhd, an agricultural company bought a machine from Marvel Bhd, and the machine was delivered on 31 March 2021. Superb Bhd decided to settle
Superb Bhd, an agricultural company bought a machine from Marvel Bhd, and the machine was delivered on 31 March 2021. Superb Bhd decided to settle the payment to Marvel Bhd by issuing 55,000 shares. The fair value of the shares and the machine on 31 March 2021 were RM1.50 and RM80,000, respectively. Superb Bhd was uncertain in determining the value of the machine. Required: Advise Superb Bhd on the correct treatment of the above transaction. (5 marks) (Total: 15 marks)
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