Determine the carrying value of the building

Assignment Help Accounting Basics
Reference no: EM133098495

Question - Medina Berhad acquired a building at a purchase price of RM6,050,000 on 2 January 2017. The legal fees incurred to acquire the building amounted to RM500,000. The acquisition is eligible for a trade discount of RM50,000. The building has 20 floors and all floors are rented out. The fair value of the building on 31 December 2018 and 31 December 2020 were RM6,720,000 and RM6,600,000 respectively. Depreciation on building is using a straight line method over 50 years.

Required -

a) Medina Berhad adopts the cost model in accordance with MFRS 140 Investment Property, determine the carrying value of the building as at 31 December 2018 and 31 December 2020.

b) If Medina Berhad adopts the fair value model in accordance with MFRS 140 Investment Property, prepare journal entries to record the transaction for the year ended 31 December 2018 and 2020?

Reference no: EM133098495

Questions Cloud

Methods for managers to implement employees : What are 10 different best practices/methods for managers to implement employees' happiness and job satisfaction in the hospitality industry (Hotel)?
Calculate the cost of new common stock : Common stock: The current market value of the common stock is RM60 per share. Calculate the cost of new common stock
Collective mixture of differences and similarities : The Society for Human Resource Management (SHRM) defines diversity like this: "the collective mixture of differences and similarities that includes for example,
Employee engagement survey results : Create a annual Action Work Plan. Define how success will be measured. List the tactics that will be used.
Determine the carrying value of the building : Medina Berhad adopts the cost model in accordance with MFRS 140 Investment Property, determine the carrying value of the building as at 31 December 2018
In which company will you invest your money and why : Question - Your grandparents gave you $175,000.00 on your 16th birthday. In which company will you invest your money? Why
Principles for establishing executive compensation : Explain the processes and principles for establishing executive compensation. Additionally, you should contrast the executive compensation process with the flex
Define what constitutes a related party : Convoluted Ltd is a company dealing in rare metals internationally. It has 40 employees (25 in the UK). Define what constitutes a related party
Administrative professional in the education sector : Using your experience as an Administrative Professional in the Education Sector, consider the three most important job duties and design three (3) objectives or

Reviews

Write a Review

Accounting Basics Questions & Answers

  What penalty amount would a tax preparer face

What penalty amount would a tax preparer face who failed to report all of his client's income (intentional disregard of rules)? The preparer charged $1,000

  Fairness of recorded balance in accounts payable

What is your conclusion about the fairness of the recorded balance in accounts payable for pinnacle manufacturing as it affects the income statement and balance sheet?

  How much are you willing to pay to buy one share

After that, dividends are projected to increase by 4.0 percent per year. How much are you willing to pay to buy one share of this stock today

  What is the cash in bank balance on December

During the audit of Rowel Company on December 31, 2018, the following data are gathered: What is the cash in bank balance on December

  Jameson corporation is considering investing 500000 in new

jameson corporation is considering investing 500000 in new computers for its main office building. the initial

  Prepare a multistep income statement

Woozie Floozy Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Woozie Floozy sold the wholesale operations to Flippy-Floppy Company. During 2014, there were 200,000 shares..

  Provide necessary journal entries on the bond investment

The bonds mature January 1, 2031; interest is payable each July 1 and January 1. Provide necessary journal entries on the bond investment

  Which one of the following is not a benefit of

which one of the following is not a benefit of budgeting?it facilitates the coordination of activities.it provides

  Concept of a forming a partnership

Izabelle and Marta are forming a partnership. Izabelle will invest a piece of equipment with a book value of $5,000 and a fair market value of $15,000. Marta will invest a building with a book value of $30,000 and a fair market value of $35,000.

  How would the divisions be ranked

How would the divisions be ranked (from best to worst performance) if the evaluation were based on net income compared to return on investment

  Discuss key fundamental principles

Discuss three key fundamental principles affecting you in this scenario - Identify the relevant facts in the scenario and evaluate on the possible course of act

  What is the investment income for Venezuela Company

What is the carrying amount of the investment in associate on December 31, 2021? What is the investment income for Venezuela Company?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd