Beta Ltd leases property, with a fair value of R2 000 000, at a market related rental of R150 000 per annum over a period of five years, payable in arrears. This same property was then leased to Charlie Ltd under an operating lease, for the same period, at R175 000 per annum, also payable in arrears. Both these lease agreements were entered into on 1 March 2024, with Beta Ltd accounting for the lease liability, using an incremental borrowing rate of 9% per annum. REQUIRED: Assume that the fair discount rate of 6% at financial year-end, on 31 December 2024. The investment property will initially be recorded at an amount of? 1. R2 000 000 2. R583 448 3. R631 855 4. R680 689