Question a I lwex 01

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Question a I lwex 01.16 W'S: >8. % Paling Ind has several properties on its books. During the year ended yo June 2021, the events detailed below took place > 01571 (0) Property A was acquired on 1 July 2015 for $1,600,000 for use as company offices. The buildings element of the property was estimated ar 90% of the purchase price (the balance consisted of land) and this was assigned a 50 your viso?ul economic life from the date of purchase. On July 2028 AN an independent valuation was obtained and the property was revalued to $1,800,000 including land, this being assigned a value of $300,000, The total useful economic life of the building was assessed to be unchanged from the date of acquisition. TIT. 2000.3 (ii) Property B was acquired in March 2020 at an auction of distressed properties. This property is a block of land, which was bought for investment potential. The cost was $750,000. No revaluation took place on 30 June 2026. Powiet, on 30 June 2021, a essional luer placed a value of $1,200,000 on the land. 1.6 ) 2 The company applies straight-line depreciation wherever depreciation is required. The fair value of property valuation is applied wherever permitted. The company applies the option to transfer revaluation surpluses annually to retained earnings. Required: Prepare the journal entries to record the above events concerning Property A and Property B for the year from 1 July 2020 to 30 June 2021. Ignore deferred tax implications. Round to the nearest thousand dollars. (15 marks) 100000 x 8% = 400. Dovete! (6) Lovais. Fuling Ltd commenced construction of a non-current asset on 1 September 2020. On 1 October 2020, it borrowed $5 million at an annual interest rate of 8% to finance the development. On 15 November 2020, the workers went on strike and no work was done until the dispute was settled on 15 December 2020. The project was still in progress at 30 June 2021 and the expected completion date was 1 July 2022. Interest was paid fronthly in top Required: ross.bike Explain, with ournal entrs, how the borrowing costs for the year ended 30 June 2021 should be accounted for in accordance with ?KAS23. (5 marks) (Total 20 marks) arrears. rosolely on this 171 ww 3 1 10.12.12 123456 6+3=970