B. On 1 March 2018, Tasneem Bhd purchased a plant which had the following value:

 

RM’000

Land 1,000

Building 2,200

Plant and Equipment 1,600

4,800

 

Tasneem Bhd spent the following amount in relation to the palnt asset purchased above:

Date RM’000

10 Mar 2018 Repair work for building 210

1 Apr 2018 Renovation works for the building including new partitions and walls 350

1 May 2018 Construction of bases for plant to be installed 270

15 May 2018 Special assessment by the state government on the land 40

All expenditures were paid for by cheque

Required:

i. Determine whether the plant is considered an asset of Tasneem Bhd 

ii. Classify the plant and the amount spent related to the plant 

iii. Prepare the journal entries to record the transaction