On 1 July 20x1, Large Mart purchases a new building (and the associated land) in Sydney. Large Mart paid $1,000,000 for the land and $500,000 for the building.

Large Mart will use the building for 20 years, after which time the building will have a residual value of zero. Large Mart will depreciate this building, using the declining balance depreciation method, with a yearly depreciation percentage of 10%.

On 1 July 20x4, Large Mart decides to revalue the land (current fair value $1,400,000) and building (current fair value 300,000) to their most up-to date fair values.

Required:

A) Calculate the yearly amount of depreciation for the building for the year ended 30 June

20x4, AND provide an outline of your calculations.

B) Provide all journal entries that are necessary to record the revaluation of the land AND

building on 1 July 20x4.