Danial Bhd is a mini-conglomerate with many divisions including manufacturing, construction and retailing. In 2019, the company was involved in several transactions related to the acquisition of property, plant and equipment in order to diversify its operation. On 1 January 2019, the company purchased a land with an old building for the purpose of self-constructed a new building as a factory by a construction division. The price of the land and old building were RM800,000 and RM100,000, respectively. Additional expenditure incurred in relation to the purchase of land and construction of new factory were as follows: Professional fees Commission paid to real estate agency Cost of demolishing an old building on the land Excavation cost Salvage value from the old building Cost of grading and clearing the land Installation of fences around the property Cost of parking lot and driveways Cost of direct material and direct labour for construction of factory RM 7,500 8,000 12,000 50,000 3,000 12,000 15,000 30,000 310,000 Overhead cost incurred during construction of factory 100,000 Cost of constructing and demolishing living quarters for the workers 13,000 building a factory Interest cost incurred to finance the construction of factory Cost of planted a temporary trees and shrubbery 8,500 5,500 In addition, Danial Bhd has an old equipment. However, this old equipment cannot be used in a new factory since a new factory is highly automated. Therefore, on 1 August 2019, Danial Bhd decided to exchange its old equipment plus cash for a new equipment from another company. The old equipment was bought on 31 July 2015 for RM150,000. The old equipment has useful life of 10 years and the company uses straight line method to calculate for depreciation. This old equipment has a market value of RM135,000 at the time of trade in. The new equipment has a market value of RM140,000. This transaction has a commercial substance. On 12 August 2019, Danial Bhd purchased a furniture for a new factory with a fair value of RM80,000 by issuing 40,000 unit of ordinary share. The market value of the share is RM2.50 per unit. On 30 September 2019, Danial Bhd has launched an opening of new factory by inviting the VVIPs. This grand ceremony involved additional cost of RM30,000. On 1 October 2019, Danial Bhd entered into contract to acquire the franchise of multivitamin products. Danial Bhd paid an amount of RM150,000 to the franchisor to produce and sell the product using the formula given by franchisor. REQUIRED: (a) Based on IAS 16 Property, Plant and Equipment, calculate the cost of land, land improvement and factory. During the construction, the division manager had specified a low quality of direct material which caused the cost of inefficiency of RM10,000. This cost has been included in the cost of direct material and direct labour. Including in the professional fees was legal fees for the land purchased totalled of RM3,500 and architect's fee for the factory was of RM4,000. The construction of the factory completed on June 2019. On 2 June 2019, Danial Bhd purchased a specialised machinery for manufacturing operation that will be used in a new factory. There is no market for this type of machinery in Malaysia, therefore Danial Bhd spent of RM20,000 for oversea trip to search for this machinery. The list price of the machinery was RM200,000 with a trade discount of 1%. Shipping and handling cost to bring the machinery to the factory was RM32,000. Insurance cost during the shipping was RM1,500. This machinery need a special foundation, therefore the company has incurred a cost of RM40,000 for concrete reinforcement and electrical cabling and wiring totalled of RM14,000 for site preparation. Installation and assembly cost was RM3,000. Cost of maintenance of this machinery for three years was RM10,000. (b) Prepare the journal entries to record the acquisition of machinery, equipment, furniture and franchise in accordance to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets. Please show your calculations.