TASCA Bhd is principally engaged as a total logistics solution provider commencement on 1 January 2016 and listed on the Main Market of Bursa Malaysia in the category of Trading/Services. The company closes its accounts on 31 December every year. Information about TASCA Bhds property, plant, and equipment on 31 December 2019 is summarised in the table below:

	RM
Freehold land	4,000,000
Warehouse	3,000,000
Accumulated depreciation - Warehouse	(400,000)
Cardboard box Machinery	450,000
Accumulated depreciation Machinery	(85,000)
Office Equipment	360,000
Accumulated depreciation Off. Equipment	(135,000)

Additional information:

1. TASCA Bhd incurred the following costs from 1 January 2020 to 31 December 2020 in relation to the construction of a new office building and the introduction of its services of the supply chain including warehouse management, order fulfillment, and shipping orders products to the local market. The company borrowed specific loan of RM400,000 at a 6% interest rate from Aksari Bank on 1 January 2020. Moreover, the company has an existing bank loan of RM800,000 at 8% on 1 January 2020.

Construction Period	RM
1 January 2020	180,000
5 March 2020	150,000
3 June 2020	120,000
30 July 2020	105,000
6 October 2020	170,000
31 December 2020	70,000

2. The land and warehouse were revalued to RM4,400,000 and RM2,350,000, respectively on 31 December 2020.

3. On 1 July 2020, TASCA Bhd exchanged the old office equipment and RM150,000 for new office equipment. The old office equipment was estimated to have a 5-year life. Depreciation on the old office equipment has been recorded through 31 December 2019. It is estimated that the fair value of the old office equipment is RM120,000 on 1 July 2020.

4. On 31 December 2019, TASCA Bhd conducted an impairment test for cardboard box manufacturing machinery and found that there is an indication of impairment. However, the management anticipates the present value of future net cash flow from cardboard box manufacturing machinery to be RM341,200 and its fair value to RM343,000. The estimated selling cost to be 4% of its fair value.

5. TASCA Bhd expecting that the demand for cardboard box manufacturing machinery would increase in the foreseeable future, the entity did not dispose of its machine. On 31 December 2020, it further estimated the present value of future net cash flow from cardboard box manufacturing machinery to be RM304,600 and its fair value to RM320,000. The estimated selling cost to be 4%.

6. The accounting policies related to the depreciation of the assets are as follows:

	Warehouse		6%
	Cardboard Box Machinery		15%
	Office Equipment		20%

REQUIRED:

(Round your answer to the whole number)

1. Calculate the amount of interest to be capitalised for the financial year 2020 and prepare the journal entries related to the interest capitalisation.

2. Prepare the journal entries to record revaluation of land and warehouse for the financial year 2020.

3. Prepare the journal entries to record the exchange and depreciation of the office equipment on 1 July 2020.

4. Prepare the journal entries to record the impairment and depreciation of the Cardboard Box Machinery on 31 December 2019 and 31 December 2020.