Question 4 CL Pte Ltd is a firm incorporated in Singapore, with December 31 year-ends and adopts the Singapore Financial Reporting Standards. On 1 January 20X1, the company purchased a building to be used as its office, paying $3 million in cash. The building is expected to have a useful life of 30 years with no residual value. The building is measured subsequently at depreciated historical cost, using the straight-line method of depreciation. On 31 December 20X1, CL Pte Ltd reclassified the building to be Investment Property (classification criteria are met). The company has a policy of carrying its investment properties at fair value. An impairment assessment on 31 December 20X1 determined the recoverable value based on value in use to be $2,850,000. The fair value less costs of disposal on 31 December 20X1 was $2,700,000. Assume that the costs of disposal is negligible. (a) Illustrate the accounting for this building by preparing the journal entries, with journal narratives, for the year ended 31 December 20X1. (15 marks) (b) Distinguish between “property, plant and equipment” and “investment property". (4 marks) (Total: 19 marks)