Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal Four floors are used for administrative purposes and the balance let out to tenants. Air Indah Bhd also incurs the following costs in connection with the purchase of the property. RM'000 Legal and agency fees 6,000 Soft launching cost to market for tenants 1,000
Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement, RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal Four floors are used for administrative purposes and the balance let out to tenants. Air Indah Bhd also incurs the following costs in connection with the purchase of the property. RM'000 Legal and agency fees 6,000 Soft launching cost to market for tenants 1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please help me and please do fast thank you.
Transcribed Image Text:Air Indah Bhd purchases a landed property at a cost of RM 200,000,000. In the sale and purchases agreement,
RM40,000,000 of the purchase price is attributed to the land portion. The building consists of 20 floors of equal space.
Four floors are used for administrative purposes and the balance let out to tenants.
Air Indah Bhd also incurs the following costs in connection with the purchase of the property.
RM'000
Legal and agency fees
6,000
Soft launching cost to market for tenants
1,000
Feng Shui cost for rearrangements of interiors
600
Administrative expenses
400
8.000
Determine the cost of the investment property on initial recognition.
Select one:
O a. RM 164,800
O b. RM 41,200
Oc. RM 306,000
O d. RM 208,000
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
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education