Example Q1 A piece of freehold land was acquired for $500,000 cash on 1 January 2016. The land is not subject to depreciation and is revalued at each fiscal year-ending 31 December.

Details about the fair value at each year-end are given below: 31.12. 2016 Fair value $490,000 31.12. 2 017 Fair value $520,000 The land was sold on 1 May 2018 for $550,000.

Required: Prepare all relevant entries relating to the land for the years 2016, 2017 and 2018. Indicate the date next to each entry.