Question

Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti berikut: At 31 December 2017, Mahligai Berhad's plant asset and accumulated depreciation accounts had the following balances: Aset bukan semasal Non- current Assets Nilai/Value Susut nilai terkumpull Accumulated depreciation RM RM Kaedah susut Hayat nilail bergunal Depreciation Useful life method Tahun/Years Tanah/Land 175,000 Bangunan/Buildings 1,500,000 240,000 Jentera/Machinery 1,125,000 225,000 Garis Lurus Straight line Garis Lurus Straight line Garis Lurus Straight line 10 Paten/Patent 500,000 125,000 Maklumat tambahanl Additional information: (1) Pada 1 Januari 2018, loji yang terdiri daripada tanah dan bangunan telah dibeli daripada Santubong Berhad dengan menggunakan pertukaran 25,000 saham biasa Mahligai Berhad. Pada 1 Januari 2018 saham biasa Mahligai Berhad mempunyai harga pasaran bernilai RM50 sesaham. Nilai penilaian semasa untuk tujuan percukaian bagi tanah dan bangunan ialah RM187,500 dan RM562,500. Bangunan dijangka mempunyai hayat berguna selama 25 tahun. On 1 January 2018, a plant facility consisting of land and building was acquired from Santubong Berhad in exchange for 25,000 of Mahligai Berhad's ordinary shares. On 1 January 2018, Mahligai Berhad's ordinary shares had a fair value of RM50 per share. Currently, assessed values of land and building for property tax purposes are RM187,500 and RM562,500 respectively. The building is estimated to have a useful life of 25 years. (2) Pada 1 July 2018, sebuah jentera telah dibeli dengan kos invois sebanyak RM 162,500. Kos tambahan sebanyak RM5,000 dan RM25,000 telah dikenakan untuk kos penghantaran dan pemasangan. Jentera tersebut dijangka mempunyai hayat berguna selama 10 tahun. On 1 July 2018, machinery were purchased at a total invoice cost of RM162,500. Additional cost of RM5,000 and RM25,000 for delivery and installation were incurred. The machinery is estimated to have a useful life of 10 years.

Answer 1

1.

Schedule of Non-Current Assets
For the Year Ended December 31, 2018
Non-Current Assets	Beginning Balance	Increase	Decrease	Ending Balance
Land	175000	312500	0	487500
Buildings	1500000	937500	0	2437500
Machinery	1125000	192500	0	1317500
Patent	500000	50000	0	550000
Total	3300000	1492500	0	4792500

Working:

Transaction price = 25000 x RM50 = RM1250000

	Assessed Value	Percent of total assessed value	Allocated Transaction Price
Land	187500	25%	312500
Building	562500	75%	937500
Total	750000	100%	1250000

Cost of machinery purchased = RM162500 + 5000 + 25000 = RM192500

2. Depreciation expense - Building: RM97500

(RM1500000/25) + (RM937500/25) = RM60000 + RM37500 = RM97500

Depreciation expense - Machinery: RM122125

(RM1125000/10) + (RM192500 x 6/120) = RM112500 + RM9625 = RM122125

Amortization expense - Patent: RM14871

(RM500000/8) + (RM50000 x 10/58) = RM6250 + RM8621 = RM14871

The useful life being less than the legal life of the patent, the costs are amortized over the useful life.

The legal fees incurred in successfully defending the patent will be amortized over the remaining useful life of the patent which is (8 x 12) - 38 = 58 months.

Per HOMEWORKLIB RULES, the first question has been answered. Please post the remaining independent question separately. Thank you.