On January 1, 2015, Weez Ltd acquired a block of land for $100,000, and, on the same day, will Ltd purchased the adjacent, virtually identical block, also for $100,000. Buildings existed on both blocks, and the land and buildings were classified as PP & E by both companies. Also, both companies in adopted the cost model. The two blocks of land were appraised at $120,000 each on June 30, 2016 and at $180,000 each revaluation model for its land on June 30, 2017, whereas have June 30 financial year ends. On April 30, 2018, recorded no further revaluations on June 30, 2017. Weez Ltd adopted the Will Ltd retained the cost model. Both businesses each company sold its block of land for $200,000. (Note: Weez Ltd after June 30, 2017.) Ignore GST for this problem. Required: a) In relation to the land, how much profit would each company report for the following financial years? Explain your answer. 1) June 30, 2016? 2) June 30, 2017? 3) June 30, 2018 Suppose that the valuations on June 30, 2017 had shown the value of the land to be $80,000 instead of $180,000. Assume the land was still sold for $200,000 in 2018. Now how much profit would each company report for the following financial years? Explain your answer. 1) June 30, 2017? 2) June 30, 2018? b) c) Comparability is an enhancing qualitative characteristic; however, it is sometimes compromised by the results achieved from legitimate accounting choices permitted by the standards. Suppose you are an investor evaluating the 2017 and 2018 financial statements of Weez Ltd and Will Ltd under scenario a), above. Construct an argument that comparability is compromised and that the accounting appears illogical under the facts. d) Identify the inconsistency inherent in the revaluation model for PP & E. Should this be justified by prudence? Does this same inconsistency exist for investment property? Explain your answer. Investment property also may be valued under either the cost or revaluation model. Is depreciation handled consistently under both mod for not depreciating investment property at all. e) els? Explain your answer. Make an argument