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Purple Co Ltd purchased an item of land 3 years ago at a cost of $700,000. Two years ago the recoverable value of the land
Purple Co Ltd purchased an item of land 3 years ago at a cost of $700,000. Two years ago the recoverable value of the land was considered to be $550,000. In the current period the land is revalued and the fair value is now $750,000. What is the treatment of the change in value in each of the periods? Please provide general journal entry for every transaction.
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