Notoro Ltd makes women's handbags. It operates a factory in an inner suburb of Perth. The factory contains a large amount of equipment that is used in the manufacture of handbags. Notoro Ltd owns both the factory and the land on which the factory stands. The land was acquired in 2014 for \(\$ 400000\) and the factory was built in that year at a cost of \(\$ 1040000\). Both assets are recorded at cost, with the factory having a carrying amount at 30 June 2024 of \(\$ 520000\).

A property boom in Perth has seen residential house prices double. The average price of a house is now approximately \(\$ 1000 \mathbf{0 0 0}\). A property valuation group recently valued the land on which the factory stands at \(\$ 2000 \mathbf{0 0 0}\). The land is considered prime residential property given its closeness to the coast and, with its superb ocean views, its suitability for building executive apartments. It would cost \(\mathbf{\$ 2 0 0} \mathbf{0 0 0}\) to demolish the factory to make way for these apartments to be built. It is estimated that to build a new factory on the current site would cost around \$1560 000.

Required The directors of Notoro Ltd want to measure both the factory and the land at fair value as at 30 June 2024. Discuss how you would measure these fair values.