2 (48 marks) Roz Limited is a company with a 30 June year-end. The company owns various as- sets, and you are presented with the following details regarding some of the com- pany's assets: Summer Property Roz Limited bought this property on 31 August 2017 for R5 500 000, of which R650 000 is related to the land. They used the property as their head office until 31 December 2021, however, due to the company's employee numbers increasing, Sum- mer Property's office space was no longer adequate. Therefore, Roz Limited decided to rent the property to a third party from 1 January 2022. Roz Limited estimated the useful life of the building to be 25 years and the residual value to be R1 500 000. On 31 December 2021, the land had a market value of R685 000, and the building had a net replacement cost of R4 500 000. The property had a fair value (land and building) of R5 555 000 on 30 June 2022. Manufacturing machines To keep up with the rapid growth Roz Limited experienced over the past year, Roz Limited required the use of a bigger and stronger manufacturing machine. Therefore, the directors have implemented a plan to replace their current manufacturing machine over the next 12 months. The current machine was sold on 1 March 2022 for R700 000, which the purchaser paid for in cash. This machine was bought on 1 June 2019 for R1 200 000 and had an estimated useful life of 6 years with no residual value. A new machine purchased was available for use on 31 January 2022. The new ma- chine was bought for R2 200 000 and Roz Limited had to pay an additional R100 000 for delivery and installation of the new machine. Roz Limited paid cash for the new machine. The new machine has an estimated useful life of 5 years and a residual value of R900 000. Additional information: Roz Limited accounts for investment properties using the fair value model. Roz Limited accounts for all other properties using the cost model. Roz Limited accounts for all its manufacturing machines using the cost model. All depreciation is accounted for using a straight-line basis. Assume that all useful lives and residual values are reviewed annually and remain unchanged. Ignore any tax implications. REQUIRED: 2.1) With reference to the Summer Property of Roz Limited for the financial year ending 30 June 2022: Discuss the proper accounting treatment of the change in the use of the property. (11 marks) Include all the journal entries that would be required in the accounting rec- ords as part of your discussion. (14 marks) 2.2) Prepare the journal entries required in the records of Roz Limited to account for the transactions in respect of the Manufacturing machines for the financial year ending 30 June 2022. (23 marks)