Problem Two: ignore GST. Assume annual accounting periods ending on June 30. On January 1, 2014, Makin Ltd bought a building for $3,000,000; is useful life was 30 years, its residual value nil, and the straight-line method would be used for depreciation The cost model was adopted. On June 30, 2016, Malkin Ltd decided to adopt the revaluation model for its bulding Required a) Calculate the book values of the building on June 30, 2014, une 30, 2015, and June 30, 2016 prior to the revaluation) b) On une 30, 2016, the building was determined to have a fair value of s3,100,000. Prepare journal entries to revalue the building. Prepare the closing entry related to the reva uation. c) Prepare the depreciation entry for June 30, 2017, assuming the useful life has increased to 40 years for the financial year ending June 30, 2017 going forward d) On June 30, 2017 the building was determined to have a fair value of $2,500,000. Prepare the ournal entry to revalue the building. (Hint: Do not ignore b) and c) above.) Also prepare the applicable closing entries for the revaluation only e) Assume that when the balance in Accumulated Depreciation was $360,000 and up to date, and the balance in building was $2,900,000, the building was sold for $3,000,000. The purchaser paid with a $2,000,000 two year promissory note (9% rate) and cash for the balance. y Prepare the journal entry for the disposal / Assuming you recogniseda gain, where in the SOCI should this gain appear? Explain why. Would your answer change if you recognised a loss