I NEED ANSWER FOR ALL

SUBJECT: FINANCIAL ACCOUNTING & REPORTING

Haji Ismail Group is a well-known company located in Langkawi. Due to the need to venture into new business, they decided to build a new plant. The construction started on 1 January 2015 and was completed within 12 months. The new plant was first used on 1 April 2016 and expected to be used for 10 years. The plant was constructed using Haji Ismail Group's own resources, which includes: Haji Ismail Group then decided to provide the depreciation on the new plant at 10% per annum on its cost, based on monthly basis. Haji Ismail Group closes its books on 31 December each year. During the year Haji Ismail Group have some of their business goods that is yet to be sold. Required: Part A 1. Identify whether the newly constructed plant is an asset of the company. (4 marks) 2. Describe whether the new plant is an item of property, plant, and equipment in accordance with MFRS 116 Property, Plant and Equipment. (4 marks) 3. Compute the initial cost of the new plant constructed by Jengka Indah Sdn Bhd (3 marks) 4. Calculate the depreciation of the new plant as at 31 December 2016. (2 marks) 5. Briefly described any TWO (2) factors that may limit the useful life of a PPE. (2 marks)