Question
Poly Limited owns a double storey house that it had used as the offices of one of its branches in Okahandja ever since it had
Poly Limited owns a double storey house that it had used as the offices of one of its branches in Okahandja ever since it had been purchased. The house had been purchased on 1 January 2014 for N$ 2 000 000, on which date its total useful life was estimated to be 20 years and its residual value was estimated to be nil. The branch in Okahandja was battling, and as a result, Poly Limited moved its Okahandja branch to another area nearby and decided to rent the house to another company. Poly Limited moved out of the house and the tenants moved in on 30 June 2015. The estimated remaining useful life and residual value remained unchanged. The carrying amount of the house on 30 June 2015 was considered to be a reasonable estimate of its fair value. The fair value of the house on 31 December 2015 was N$ 2 200 000. Poly Limited uses the cost model to measure owner-occupied property and the fair value model to measure investment property Required: Journalise the entries relating to Poly Limiteds general journal for the year ended 31 December 2015. Ignore tax. Journal narrations are not required.
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