(i)
As the plant was acquired for the company’s own use, and thus treat as non-current asset for the company. The plant is a newly addition of non-current assets for Creative. The cost of the newly acquired plant should be recorded in the book at the date of acquisition.
[interest expense?] Moreover, the plant was financed by an 8% loan,
Depreciation for the year, amounting $500,000 have to be recorded, debiting the Profit and loss account and crediting the Accumulated depreciation account, the amount is calculated on straight line basis, i.e. cost over its useful years, 10 years.
For the year ended 2012, the plant have to be carried at cost less accumulated depreciation. As on 31 December, Creative recorded a net book value of Non-current Asset of $4,500,000 under the category of Plant and Machinery.

1/1/12 Addition: Plant $5,000,000 10years
Financed by $5,000,000 8%loan
31/12/12 Depreciation: $500,000 NBV=$4,500,000

Journal:
1/1
Dr Plant and equipment $5,000,000
Cr 8% loan $5,000,000

31/12
Dr P&L- Depreciation $500,000
Cr accumulated depreciation $500,000

Dr P&L – Interest expense
Cr Interest payable

(ii)
1/1/12
Equipment
Production unit $10,000,000 20 years
Depre: $500,000
Electrical systems $3,000,000 10 years
Depre: $300,000
Sub-assemblies $2,000,000 4 years
Depre: $500,000

1/1
Dr Equipment $15,000,000
Cr Bank $15,000,000
31/12
Dr P&L – Depreciation $1300,000
Cr Accumulated depreciation $1300,000

Depreciation is to be calculated by the cost of the non-current asset over its useful life. For the new manufacturing equipment of Creative, the three components are of different useful life although they were acquired on the same date. So, the depreciation in the books of the Creative have to be recorded in three calculations:
The