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Question - RP Enterprise owns a piece of freehold land. It was purchased in 2009 at 25 1-5 million. In 2011, the land was written down by $200,000 due to a slump in land value and it=s carrying value at 31 December 2011 was $1-3 million. However, there had been a surge in land price in 2011 due to a huge development in the area causing the fair value of the land now to be worth $2 million.
Required -
a) Prepare journal entries to reflect the revaluation of the freehold land in the current year.
b) Identify FOUR elements of initial cost to be included in the Property, Plant and Equipment.
c) Discuss ONE measurement on the cost model and THREE measurements on the revaluation model subsequent to initial measurement for the Property, Plant and Equipment.
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