QUESTION 2 Paradise Bhd closes its account on 31 December annually. The company bought a heavy machinery on 1 January 2016 for RM300,000 with residual value of RM30,000. The heavy machinery was...

Extracted text: QUESTION 2 Paradise Bhd closes its account on 31 December annually. The company bought a heavy machinery on 1 January 2016 for RM300,000 with residual value of RM30,000. The heavy machinery was depreciated at 10% per annum on cost. In 2020, new developments in the marketplace meant that the product manufactured by the heavy machinery would become obsolete after the end of 2022 (thus, useful life of the heavy machinery would be shortened). In addition, its residual value also reduced to RM12,000. The company also acquired a car on 1 January 2018 for RM124,000 with residual value of RM24,000. The car was depreciated at 20% per annum on cost. In 2020, the company decided to change its residual value to nil. Acquired patent of RM100,000 with finite life of ten years from 1 January 2019. In 2020, a potential buyer willing buy the patent at RM18,000 at the end of its finite life. Required: Simplify the above information by preparing journal entries to record the depreciation and amortisation figures for 2019 and 2020. (a) Prepare the extracted statement of financial position on 31 December 2020. (clearly show cost, accumulated depreciation and carrying amount for each asset). (b) Summarise the above information by preparing extracted statement of profit or loss for year ended 31 December 2020. | (c)