1- Amazing Adventure Bhd purchased a three-storey building on 1 January 2020 at the value of...

 

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1- Amazing Adventure Bhd purchased a three-storey building on 1 January 2020 at the value of RM1,000,000. The bulding is to be used for general administrative duties and as an exhibition centre. The useful life of the building is estimated to be 20 years, while the residual value is expected to amount to RM200,000. The depreciation policy of the company is to use the straight- line method on all buildings. On 1 January 2021, Amazing Adventure paid RM45,000 to construct car park lots. The market value of the building was estimated at RM1.3 million and RM1.6 million on 1 January 2021 and 2022, respectively. a- Explain the 2 theoretical methods that is used and allowed in MFRS 116 (Subsequent Measurement) (4m) b- What is depreciation? Explain the difference between depreciation and amortization. (3m) 2- Zion Bhd purchased imported biscuits and cookies. The related costs incurred in relation to the testers were as follows: Invoice price Trade discount (10%) Import duties Transportation cost Installation cost Administrative cost Calculate the cost. (4m) RM 75,000 RM 2,504 RM 1,200 RM 2,890 RM 7,220 1- Amazing Adventure Bhd purchased a three-storey building on 1 January 2020 at the value of RM1,000,000. The bulding is to be used for general administrative duties and as an exhibition centre. The useful life of the building is estimated to be 20 years, while the residual value is expected to amount to RM200,000. The depreciation policy of the company is to use the straight- line method on all buildings. On 1 January 2021, Amazing Adventure paid RM45,000 to construct car park lots. The market value of the building was estimated at RM1.3 million and RM1.6 million on 1 January 2021 and 2022, respectively. a- Explain the 2 theoretical methods that is used and allowed in MFRS 116 (Subsequent Measurement) (4m) b- What is depreciation? Explain the difference between depreciation and amortization. (3m) 2- Zion Bhd purchased imported biscuits and cookies. The related costs incurred in relation to the testers were as follows: Invoice price Trade discount (10%) Import duties Transportation cost Installation cost Administrative cost Calculate the cost. (4m) RM 75,000 RM 2,504 RM 1,200 RM 2,890 RM 7,220

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a In MFRS 116 Subsequent Measurement there are two theoretical methods used for measuring property plant and equipment including buildings after initi... View the full answer