22 Mark Pathology Laboratories Ltd (PLL) purchased it's building on 1 July 2010 for $700,000. As PLL develop and make medical products, the building needed a number of modifications and specialised fittings to be added prior to be able to use the building. These modifications and specialised fittings cost $500,000. Architect and survey plans cost $50,000 and a loan was negotiated to complete the project for $1,300,000. It was estimated that PLL would be able to use the building for 20 years before the building would be out of date and unusable. The decision to either sell the building or refurbish the building would be made in 19 years. It was decided to depreciate the building costs over 20 years applying an expected possible resale value of $800,000. 21a) What is the cost price of the Building and briefly justify your cost price. (5 marks) 1 = - = What is the depreciation journal for the year ended 30 June 2011 (2 marks) A- B I U X2 x? EE E E ABC 123 Dr Cr Details I Marks After 10 years the Pathology industry has had major changes and PLL is now considering possible relocation or undertaking refurbishments early. They had an expert revalue the buildings and advised the fair value at 30 June 2020 is $1,850,000 but costs to sell are expected to be $80,000 At the time, PLL's 30 June 2020 trial balance after doing the annual depreciation journal has the following balances relating to the building: Debit Credit Accounts $1,800,000 Buildings . 234,424 Accumulated Depreciation - Building . 1 (1 mark) Determine what is the carrying amount of the Buildings PLL is currently using the cost model, but are aware that AASB 116 Property Plant and Equipment standard would allow them to revalue the building as at 30 June 2020. To help them with a loan, PLL has decided to adopt the revaluation model for the building. What is the difference between the PLL's current carrying amount as you calculated in question 21 c), and the amount that they need to co.ider as the revaluation amount? Is this difference material or not? Provide workings and explain why material or not. (3 marks) lal == lul A B I U X2 x? ABC 123 9 C 21e) Based on your above calculations, prepare the journal entries if a revaluation is required as at 30 June 2020. (4 marks) A A B I U x2 x? iii III C ABC 123 Dr Date Details