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QUESTION TWO Star Limited purchased a piece of land, the details of which are as follows: Date of purchase: 1 January 2013 Cost: R2 500 000 Star subsequently measures its land using the revaluation model. It is the policy of the company to determine the fair value of land every two years. The fair value of the land at the following dates is: 31 December 2015 R4 750 000 31 December 2017 R1 450 000 31 December 2019 R3 500 000 The tax authorities levy income tax at 30% of taxable profits. Capital gains are included in taxable profits using a capital gains inclusion rate of 80%. The cost of land is not deductible in the calculation of taxable profits. Star Limited intends to keep the land. Required a) Prepare the journal entries relating to land for the years ending 31 December 2013 to 31 December 2019. b) Briefly explain the deferred tax implications when revaluing land