Lemurato plc completed a production facility at the end of 2014 on land which belongs to a third party. Lemurato has concluded a 50-year contract at the same time for a leasehold of the land. Total cost to build the factory amounted to 2,590,000. After 50 years the leasehold contract for the land will end and the factory building remain property of the lessor of the land. A payment of 500,000 at the end of the leasehold contract will be made to Lemurato plc. The total construction costs of 2,590,000 contain a heavy-duty lift, which has a useful life of 25 years and costs of 90,000. According to the leasehold contract, Lemurato plc must remove this lift at the end of the contract period and restore the original state at its own cost, which are estimated at a present value of 10,000. Other site restoration costs can be neglected. Lemurato plc is part of a group of companies, which establishes consolidated financial statements in accordance with IFRS. The group has elected to use the revaluation model for the factory building with a frequency of four years. The asset category for the lift falls under the cost model, however. At the end of 2018, the first revaluation has taken place based on a valuation by an external expert. The valuer set the value of the building (without land and the lift) at 2,800,000 as per 31 December 2018. Furthermore, the group has chosen to apply the straight-line depreciation method.

(a) Calculate the depreciation charge for the factory building (excluding the lift) for 2018

(b) Calculate the depreciation charge for the lift (including provision for removal and restoration costs

(c) Assuming that the building (excluding the lift) had been accounted for using the direct depreciation method (account: Factory Building) please state the journal entry for the revaluation as per 31 December 2018. You may ignore deferred tax aspects. Clearly indicate in which part of the comprehensive income statement (i.e. P/L or OCI) the revaluation difference will be presented.

(d) Calculate and state the depreciation of the building for the year 2019.