BKARIO13 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 1 During the year 2020, Akasia Maju Bhd (AMB) purchased a piece of land with an existing building for RM1,125,000. The land was valued at RM1,050,000 and the building at RM75,000. AMB demolished the building and constructed a new building as headquarters on the site. The new building and land improvement are expected to last for 80 years with no residual value and the construction was fully completed by the end of the year 2020. The following represents the various items related to the project in year 2020: Items RM Lawyer's fee to close the purchase deal 22,500 Cost of land fill and clearing 18,000 Architect's fee 120,000 Fencing around the land 60,000 Cost of demolishing existing building 97,500 Interest on financing of construction paid during construction 282,000 Receipts from sale of demolition scraps 15,000 Construction costs 1,200,000 Landscaping (trees and shrubs) 30,000 Parking lots and concrete walks on the property 180,000 Insurance premium during construction period 18,000 Moving costs from old headquarters to new headquarters 150,000 To accommodate the mission of improving productivity and efficiency, the company also bought a new special equipment and made the following payments. Items RM Manufacturer's list 4,303,500 Trade discount 37,500
BKARIO13 FINANCIAL ACCOUNTING AND REPORTING I QUESTION 1 During the year 2020, Akasia Maju Bhd (AMB) purchased a piece of land with an existing building for RM1,125,000. The land was valued at RM1,050,000 and the building at RM75,000. AMB demolished the building and constructed a new building as headquarters on the site. The new building and land improvement are expected to last for 80 years with no residual value and the construction was fully completed by the end of the year 2020. The following represents the various items related to the project in year 2020: Items RM Lawyer's fee to close the purchase deal 22,500 Cost of land fill and clearing 18,000 Architect's fee 120,000 Fencing around the land 60,000 Cost of demolishing existing building 97,500 Interest on financing of construction paid during construction 282,000 Receipts from sale of demolition scraps 15,000 Construction costs 1,200,000 Landscaping (trees and shrubs) 30,000 Parking lots and concrete walks on the property 180,000 Insurance premium during construction period 18,000 Moving costs from old headquarters to new headquarters 150,000 To accommodate the mission of improving productivity and efficiency, the company also bought a new special equipment and made the following payments. Items RM Manufacturer's list 4,303,500 Trade discount 37,500
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College