(48 marks) Velvet Construetion Limited is a company with a 30 June year-end and is involved in the construetion industry. During the 2022 financial year, Velvet Construction Limited determined that they no longer need the firat floer of their office building and can fit all office employees on the ground floor. They therefore vacated the first floor to rent it out to a third party. The firat floor was rented out to Red Limited from 1 January 2022. Velvet Construction Limited will be able to sell the first floor to a third party, should they wish to do so. Velvet Construction Limited initially acquired the above mentioned office building as a new, unused office property on 31 March 2015 for R5 200000 , of which R200 000 is related to the land. On the date of acquisition, the useful life of the building was estimated at 20 years with no residual value. The first floor makes up 40% of the total building. The following fair values were applicable: Velvet Construction Limited uses the following accounting policies: - Investment property is accounted for using the fair value model. - Land and buildings are accounted for using the cost model. - Depreciation is accounted for using the straight-line method. Assume a Corporate Income Tax Rate of 28% and that 80% of capital gains will be taxable. The office building had a tax base of R3 255000 on 30 June 2021 and R3 092 000 on 30 June 2022. REQUIRED: Prepare the journal entries required, including deferred tax, in the records of Velvet Construction Limited for the financial year ending 30 June 2022 to account for the above-mentioned property. (48 marks) Velvet Construetion Limited is a company with a 30 June year-end and is involved in the construetion industry. During the 2022 financial year, Velvet Construction Limited determined that they no longer need the firat floer of their office building and can fit all office employees on the ground floor. They therefore vacated the first floor to rent it out to a third party. The firat floor was rented out to Red Limited from 1 January 2022. Velvet Construction Limited will be able to sell the first floor to a third party, should they wish to do so. Velvet Construction Limited initially acquired the above mentioned office building as a new, unused office property on 31 March 2015 for R5 200000 , of which R200 000 is related to the land. On the date of acquisition, the useful life of the building was estimated at 20 years with no residual value. The first floor makes up 40% of the total building. The following fair values were applicable: Velvet Construction Limited uses the following accounting policies: - Investment property is accounted for using the fair value model. - Land and buildings are accounted for using the cost model. - Depreciation is accounted for using the straight-line method. Assume a Corporate Income Tax Rate of 28% and that 80% of capital gains will be taxable. The office building had a tax base of R3 255000 on 30 June 2021 and R3 092 000 on 30 June 2022. REQUIRED: Prepare the journal entries required, including deferred tax, in the records of Velvet Construction Limited for the financial year ending 30 June 2022 to account for the above-mentioned property