Question 2 16 Marks On 31 August 2015, Shikongo Limited moved its manufacturing division out of the property that it owned on a freehold basis and into larger leased premises. This freehold property, consisting of land and a factory building was immediately leased out to an unrelated party under a 10 year operating lease. The freehold property had originally cost N$ 10 400 000 (purchased on 1 January 2010), on which date its total useful life was estimated to be 25 years and its residual value was estimated to be nil. The freehold property was revalued for the first time on 31 December 2013: the land was revalued to its fair value by N$ 1 million and the factory building was impaired by N$ 1,8 million. Further revaluations were performed on 31 August 2015 and 31 December 2015. The following details pertain to the vacated factory land and buildings

	Land N$	Buildings (25 year useful life) N$
Cost 1 January 2010	2 400 000	8 000 000
Carrying amount 31 December 2014	3 400 000	4 685 714
Fair value at 31 August 2015	4 000 000	7 500 000
Fair value at 31 December 2015	4 180 000	7 900 000

The following accounting policies and related information apply: Land and buildings that are classified as property, plant and equipment are measured under the revaluation model, using the net replacement cost basis and are depreciated using the straight line basis. Investment properties are measured under the fair value model. Required Prepare the journal entries to record all the matters relating to the factory land and buildings, including its change of use, for the year ended 31 December 2015. Journal narrations are not required Ignore taxation