Question: 5. Awantec Sdn. Bhd. acquired a machine model Z-tec at the price of RM1,000,000 on 1 January 2015. The company used the machine in its

5. Awantec Sdn. Bhd. acquired a machine model Z-tec at the

5. Awantec Sdn. Bhd. acquired a machine model Z-tec at the price of RM1,000,000 on 1 January 2015. The company used the machine in its production plan. Economic useful life of the machine was estimated to be 15 years with no scrap value. The machine was revalued on 31 December 2015 at RM1,380,000. On 31 December 2017, dedining sales of the product produced by the machine due to financial problem faced by two of its major customers has caused the company to estimate recoverable value at net fair value of RM700,000. The company's cost of capital is at 5%. Projected cash inflow for the machine: As at 31/12/2018 31/12/2019 31/12/2020 RM 350,000 250,000 200,000 Required to prepare: The relevant journal entries in the book of Awantec Sdn. Bhd. from the year 2015 until 2017 for machine model Z-tec. (Notes: The company accounts for its asset using revaluation model and made annual transfer from revaluation reserve to retained earings.) (20 marks)

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