United Limited, a company which manufactures sporting equipment and accessories, owns a number of properties which are listed below.

1. Trafford Lane: a freehold factory and office block used entirely by United Limited for its own manufacturing and administration.

2. Stretford Road: a freehold office block, let at commercial rates to a large insurance company.
3. Red Way: a property held by United Limited under a finance lease and leased out to City Limited under an operating lease.
4. Numbers 2, 4, 6 and 8 Black Street: four freehold cottages which were originally purchased to provide assistance to employees but are now let commercially to tenants who have no other connection with the company. \ e United Limited had all the above properties valued by an independent professional valuer on 31 May 2007. The following is a summary of the valuations and original costs of the properties:

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Cost Valuation Land Buildings Land Buildings Freehold Properties: (1) Trafford Lane 10,000 24,000 40,000 90,000 (2) Stretford Road 25,000 60,000 30,000 80,000 (4) Black Street 4,000 8,000 16,000 24,000 Each of the above properties is estimated to have a further useful life of 40 years. Leasehold Properties: (3) Red Way Cost Valuation 72,000 120,000 United Limited adopts a straight-line depreciation policy. Requirement Prepare the necessary journal entries to incorporate the above revaluations in the books of United Limited as at 31 December 2007.