nuuuul IIIIIIH FUIIUI'Lr-IJ The following is an extract from the accounting policies of Pizazza Ltd: - Owner-occupied land is accounted for using the revaluation model. It is the policy of the company to realise any revaluation surplus upon disposal of the underlying asset. it is company policy that revaluations will be made with sufficient regularity to ensure that carrying amounts do not differ materially from which would be determined using fair values at the end of the reporting period. - Owner-occupied buildings and the walk-in fridge are accounted for using the cost model. 0 Investment property is accounted for using the fair value model. The carrying amount of the investment property will be recovered through the sale of the property. 0 Depreciation is provided for according to the straight-line method over the estimated useful lives of the assets. Taxation The South-African normal tax rate is 28%. The capital gains tax inclusion rate is 80%. The SA Revenue Service allows a 5% annual building allowance on all the buildings. according to section 13(1) of the Income Tax Act, on the straight-tine method, not apportioned for part of the year. Deferred tax is provided for on all temporary differences in accordance with the statement of financial position approach. There are no other items causing temporary or exempt differences except those mentioned in the question. The company will have sufficient taxable profits and capital gains in future against which any unused tax losses can be utilised. Assumptions 0 Land and buildings are regarded as separate classes of assets. . All amounts are material. - ignore the implications of Value-Added Tax (VAT)