Prepare the relevant journals and cost to be capitalised as well as the fair value?

conto 11:311 201 final.docx Done Question 4 In 2019 SME A incurred (and paid) the following expenditures in acquiring property consisting of ten identical freehold detached houses each with separate legal title including the land on which it is built Dale Amount (NS) Additional Information 1 January 2019 200.000.000 20 percent of the prices attributable to the land 1 January 2019 20,000,000 Nonfundatie transfer N$200.000.000 purchase 1 January 2019 1.000.000 Legal costo directly arbable to the acquisition 1 January 2019 10.000 Reimbursing the previous owner for prepaying the non refundable local government property taxes for the month period ending 30 June 2019 1 January 2019 500.000 Advertising campaign to 2 January 2019 200.000 celebrate new rental business that attracted extensive coverage by the opreme 30 June 2019 20,000 Non cetudatle annual bar government property Throughout 2019 120.000 Dayto-day repairs and maintenance, including the salary and other costs of the administration and maintenance start. These costs are tributable to each of the tenunits SME A uses one of the ten units to accommodate its administration and maintenance staff. The other nine units are rented to independent third parties under non- cancellable operating leases. Before occupying the premises tenants pay SME A a refundable deposit equal to two months' rentals. Deposits held by SME A at 31 December 2019 totalled N$270,000. Rentals received in the year ended 31 December 2019 totalled N$1,550,000, of which N$50,000 relates to January 2020. At 31 December 2019 SME A made the following assessments about the units: Useful life of the buildings: 50 years from the date of acquisition The entity will consume the buildings" future economic benefits evenly over 50 years from the date of acquisition. Assume that the fair value of the units can be determined reliably without undue cost or effort on an ongoing basis and that the residual value of the owner-occupied unit is nil. At 31 December 2019 the fair value of each unit was reliably estimated as N$25,000,000 conto 11:311 201 final.docx Done Question 4 In 2019 SME A incurred (and paid) the following expenditures in acquiring property consisting of ten identical freehold detached houses each with separate legal title including the land on which it is built Dale Amount (NS) Additional Information 1 January 2019 200.000.000 20 percent of the prices attributable to the land 1 January 2019 20,000,000 Nonfundatie transfer N$200.000.000 purchase 1 January 2019 1.000.000 Legal costo directly arbable to the acquisition 1 January 2019 10.000 Reimbursing the previous owner for prepaying the non refundable local government property taxes for the month period ending 30 June 2019 1 January 2019 500.000 Advertising campaign to 2 January 2019 200.000 celebrate new rental business that attracted extensive coverage by the opreme 30 June 2019 20,000 Non cetudatle annual bar government property Throughout 2019 120.000 Dayto-day repairs and maintenance, including the salary and other costs of the administration and maintenance start. These costs are tributable to each of the tenunits SME A uses one of the ten units to accommodate its administration and maintenance staff. The other nine units are rented to independent third parties under non- cancellable operating leases. Before occupying the premises tenants pay SME A a refundable deposit equal to two months' rentals. Deposits held by SME A at 31 December 2019 totalled N$270,000. Rentals received in the year ended 31 December 2019 totalled N$1,550,000, of which N$50,000 relates to January 2020. At 31 December 2019 SME A made the following assessments about the units: Useful life of the buildings: 50 years from the date of acquisition The entity will consume the buildings" future economic benefits evenly over 50 years from the date of acquisition. Assume that the fair value of the units can be determined reliably without undue cost or effort on an ongoing basis and that the residual value of the owner-occupied unit is nil. At 31 December 2019 the fair value of each unit was reliably estimated as N$25,000,000