QUESTION 1 On January 1, Year 1, LBC Limited acquires a building at a cost of GHC50,000. The building is expected to have a 25-year life and no residual value. The asset is accounted for under the revaluation model and revaluations are carried out every three years. On December 31, Year 3, the fair value of the building is appraised at GHC45,000. Required: Prepare the entries required on December 31, Year 3 QUESTION 2 Joyce Limited purchased land and building on 1st January, 2012 for GHC200,000 (land GHC60,000 and buildings GHC140,000). While there is no depreciation on land, however the company uses 5% reducing balance method on building. On 1st January 2016 the land was revalued to GHC75,000 and the buildings to GHC135,000. Depreciation on buildings is computed at 4% reducing balance. The financial statements are prepared on a yearly basis. Required: Calculate the revaluation reserve for the year ended 31st December, 2016