Reference no: EM132554014

Carryon limited produces widget. The following information relates to its plant:

1. The plant originally cost R1 000 000 when purchased on 01 January 2018. Plant is depreciated using the straight line basis over 5 years to a nil residual value.
2. Plant was revalued by Mr Pernickity, an independent appraiser and member of the Institute of Valuers. Mr Pernckity used the cost approach to value the plant by ascertaining the cost to replace the service capacity of the plant in an active market.

The fair values measured on 01 January 2019 and 01 January 2020 amounted to:

R900 000 on 01 January 2019

R500 000 on 01 January 2020

• The company adopted the revaluation model.
• The company transfers the maximum from the revaluation surplus to retained earnings on annual basis. The company intends to keep the asset.
• The company also does impairment testing at year end.

Required:

Question 1: Journalise all related transactions for the years ending 31 December 2018, 2019 and 2020.