Question 2 Kimono Bhd purchased a piece of land and a building near the Menara Kuala Lumpur for RM20 million. Apart from the purchase price, Kimono Bhd has inccured the following expenditures in relation to the purchase of the land and building: Legal fees to draft the contract RM6,000 Title insurance RM12,000 Property taxes for the period after acquisition (pro-rated) RM25,000 Municipal Council transfer fees RM7,000 On the other hand, the company hired a professional independent valuer to revalue the land and building. After revaluation process, the valuer stated that the land value is approximately RM 2.2 million while the building is RM1.1 million if the company purchased separately. Not long after acquistion, Kimono Berhad spent RM170,000 to build a parking lot and another RM35,000 for its interior design.

Question 2 Kimono Bhd purchased a piece of land and a building near the Menara Kuala Lumpur for RM20 million. Apart from the purchase price, Kimono Bhd has inccured the following expenditures in relation to the purchase of the land and building: Legal fees to draft the contract RM6,000 Title insurance RM12,000 Property taxes for the period after acquisition (pro-rated) RM25,000 Municipal Council transfer fees RM7,000 On the other hand, the company hired a professional independent valuer to revalue the land and building. After revaluation process, the valuer stated that the land value is approximately RM 2.2 million while the building is RM1.1 million if the company purchased separately. Not long after acquistion, Kimono Berhad spent RM170,000 to build a parking lot and another RM35,000 for its interior design.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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