Two pieces of land in Semenyih and Puchong and also an eight-storey office building have been acquired by Nayland Bhd on 1 July 2017. The cost of Semenyih land, Puchong land and office building are RM3,500,000, RM4,000,000 and RM5,000,000, respectively. Puchong land was acquired to construct Nayland’s warehouse while the office building was rented out to its subsidiary company, Mayland Bhd at market rental rate. However, the management of Nayland Bhd has not decided whether to use Semenyih land for expansion or sell it later when the price goes up. It is estimated that the office building will evenly provide benefits to the company over its useful life of 40 years. Nayland Bhd uses revaluation model for plant, property and equipment (PPE) and fair value model for its investment property. Nayland Bhd’s accounting year ends on 31 December each year. A professional appraiser has assessed the properties’ market value for the year end 2017 and 2018, as follows:

Property	fair value 2017(RM)	fair value 2018(RM)
Semenyih land	3,300,000	2,500,000
Puchong land	4,000,000	4,050,000
Eight - storey office building	5,500,000	5,200,000

On 1 March 2019, Nayland Bhd occupied back the office building as their main office for company’s operation. However, the building also partially rented out. The floor area rented out was just a small portion of the overall office-building and its value could not be separately identified. The fair value of office building at the commencement date of occupied was RM5,400,000.

REQUIRED:

(a) Explain which property(ies) can be classified as investment property for Nayland Bhd according to MFRS 140 Investment Property.

(b) Prepare the related journal entries for Nayland Bhd’s investment property(ies) for the years 2017, 2018 and 2019.