Reference no: EM132962838

Problem 1. In accordance to MFRS140, land or building held to gain rental income or for long term capital appreciation is an investment property.

a) True

b) False

Problem 2. In accordance to MFRS140, land or building held by the owner or by the lessee under operating lease for use in the production or supply of goods or for administrative purposes is an owner-occupied property.

a) True

b) False

Problem 3. Blue Bhd acquired a 6-storey building on 1 January 2020. The company used 1 level as its administrative office and another level as a gymnasium as well as a child care center for its staffs. The remaining levels are rented to Ocean Blue Bhd. In situation where the portion of the building can be sold separately, what is the conclusion of the property usage?

a) The whole 6-storey building is an investment property under MFRS140.

b) The whole 6-storey building is a property, plant and equipment under MFRS116.

c) 2 storeys is a property, plant and equipment under MFRS116, 4 storeys is an investment property under MFRS140.

d) 4 storeys is a property, plant and equipment under MFRS116, 2 storeys is an investment property under MFRS140.