On 1 June 2021, Juta Limited entered into a lease agreement with ACC Limited in terms of which ACC Limited will rent a property from Juta Limited for ten years. Prior to ACC Limited renting the property, Juta Limited occupied the property for its own use.

Juta Limited, however, will no longer be able to use the property for its own operations. Juta Limited bought the property on 1 June 2018 for R2 000 000. R600 000 of the cost related to the land. The useful life of the building was estimated at 30 years with no residual value. The fair value of the property was as follows:

Rands

Fair value – 1 June 2021

Land 750 000

Buildings 1 550 000

Fair value – 28 February 2022

Land 770 000

Buildings 1 600 000

Additional information:

• Owner-occupied property is accounted for using the cost model, and investment property is accounted for using the fair value model. • Owner-occupied property is depreciated on a straight-line basis.

• The useful life and residual value remained unchanged to date.

• Juta Limited has a 28 February financial year-end.

• The South African Revenue Service allows an annual building allowance of 5%, and the allowance is not apportioned for part of the year.

• Assume an income tax rate of 28% and that 80% of capital gains are taxable.

• Assume that the cost of the property reflects its base cost for capital gains tax purposes

Required:

Prepare the Statement of Financial Position of Juta Limited as of 28 February 2022, showing ALL the balances, including deferred tax and comparative figures, relating to the property above. Include ALL calculations, and round all amounts to the nearest Rand.