Assignment Nine Problem One (8 points) Adams Ltd prepares annual adjusting entries for its 31 December financial year-end. Its adjusted trial balance appears below. Adams Ltd Adjusted Trial Balance 31 December 2018 - - - - - - - - - - - - - Cash... Accounts Receivable ............. Office Supplies....... Investment Property... Land... Equipment.... Accumulated Depreciation-Equipment GST Clearing .... Accounts Payable Loan Payable... Unearned Revenue .... Share Capital.. Retained Earnings Revaluation Reserve, Land Dividends Service Revenue Interest Revenue Other Operating Expenses Loss on Sale of Equipment... Income Tax Expense........ Interest Expense....... Office Supplies Expense .... Depreciation Expense. Rent Expense... Debit Credit $ 6,000 2,200 1,800 300,000 330,000 45,000 $ 4,000 2,000 3,300 20,000 6,000 265,000 324,400 30,000 2,500 59,300 3,000 10,000 1,000 12,000 1,500 600 2,500 1.900 $717.000 $717.000 After the adjusted trial balance was prepared, the company's accountant discovered that the following events had not yet been considered: 1) The Revaluation Model is used for Land, which was re-valued to $290.000 at the end of December 2018. 2) The Revaluation Model was adopted at the end of 2018 for the equipment, which was appraised at $50,000 on 31 December 2018. 3) On 31 December 2018, the investment property, which is to be shown at fair value, was appraised at $320,000. REQUIRED: a) Prepare the journal entries suggested by the above three events that had not yet been considered. You will have to introduce some new accounts for the JES. (Make sure to distinguish OCI gains/losses from profit affecting gains/losses.) b) Prepare a Statement of Comprehensive Income in the form and format required In this course. c) Prepare the equity section only of the Balance Sheet as at 31 December 2018. d) The CEO of Adams Ltd believes the investment property should be depreciated under IFRS. She then states that if it is not depreciated, then in order to be consistent under IFRS, the equipment should not be depreciated either. Do you agree? Why or why not