IAS 40-INVESTMENT PROPERTY QUESTION 8 Investment property is acquired January 11, 2014, at a cost of GH200,000. Fair values on: December 31, 2014 - GH190,000 December 31, 2015 - GH 198,000 December 31, 2016 - GH205,000 Required: Account for how the above transaction should be treated. QUESTION 9 KK owns the following properties as at 31" December 2016: Property: Fair value GHE Land with future use undetermined 3,200,000 Factory rented to KK's subsidiary under an operating lease 2,400,000 10 floor office building (fair value is equal per floor) with 3 floors used as the subsidiary's head office and seven floors rented to third parties under an operating lease. 15,000,000 Empty building held for capital appreciation, but not leased out. 4,100,000 KK's accounting policy is to hold its investment properties under the fair value model and its land and buildings under the revaluation model. Required: In accordance with IAS 40 Investment Property calculate the carrying amount to be recognized as investment property in KK's consolidated financial statements as at 31 December 2016. REVALUATION- IAS 16 QUESTION 6 On January 1, Year 1, LBC Limited acquires a building at a cost of GH50,000. The building is expected to have a 25-year life and no residual value. The asset is accounted for under the revaluation model and revaluations are carried out every three years. On December 31, Year 3, the fair value of the building is appraised at GH45,000. Required: Prepare the entries required on December 31, Year 3 QUESTION 7 Joyce Limited purchased land and building on 1st January, 2012 for GH200,000 (land GH60,000 and buildings GH140,000). While there is no depreciation on land, however the company uses 5% reducing balance method on building. On 1st January 2016 the land was revalued to GH75,000 and the buildings to GH135,000. Depreciation on buildings is computed at 4% reducing balance. The financial statements are prepared on a yearly basis. Required: Calculate the revaluation reserve for the year ended 31st December, 2016