United Limited, a company that 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 as a right-of-use asset and leased to City Limited under an operating lease.

4. Numbers 2, 4, 6 and 8 Black Street: four freehold cottages which were originally pur- chased to provide assistance to employees but are now let commercially to tenants who have no other connection with the company.

United Limited had all the above properties valued by an independent professional valuer on 31 December 2017. The following is a summary of the valuations and original costs of the properties:

Requirement:

Prepare the necessary journal entries to incorporate the above revaluations in the books of United Limited as at 31 December 2017.

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Freehold Properties: 1. Trafford Lane 2. Stretford Road 4. Black Street Cost Valuation Land Buildings Land Buildings 10,000 24,000 40,000 90,000 25,000 60,000 30,000 80,000 4,000 8,000 16,000 24,000 Each of the above properties is estimated to have a further useful life of 40 years. Right-of-use property 3. Red Way Cost 72,000 United Limited adopts a straight-line depreciation policy. Valuation 120,000