1. Question 1 [30 marks] London plc, which has a 31 December year end, acquired an item of property, plant, and equipment (PPE) on 1 January 2019 for 50,000 for which it applies the revaluation model. The asset is depreciated on a straight-line basis over its useful economic life of ten years (the assumed residual value is nil). On 31 December 2019 it was established that the gross replacement cost of the asset was 60,000. Required: a) Show all the accounting entries for the asset in year 2019. [15 marks] b) London plc adopts revaluation model for its PPEs however IFRS allows entities to choose between the cost model and the revaluation model. Briefly explain the difference between these two models. (200-300 words) [5 marks] c) Discuss the main issues related to the use of fair value accounting. (200-300 words) [10 marks]