QUESTION 2 [20] Tiffany Limited leases a building from Coventry Limited under an operating lease. Coventry Limited's accounting policy for investment properties is the fair value model. The operating lease is not classified as a short-term lease and the underlying asset is not of low value. Details of the building are below: Purchased for R1 500 000 on the 1 January 2019 (useful life 50 years) Fair Value of the building R1 550 000 1st July 2020 Fair Value R1 490 000 31 December 2020 On the 1st June 2020, the building Tiffany was occupying caught on fire. Subsequent investigations found that the fire was caused from an electrical short (power surge) when the electricity came back on after loadshedding. Unfortunately, the health inspector declared the building unsafe to be occupied. Coventry fortunately had another premises available from the 1st of July which was suitable for Tiffany. Tiffany negotiated on the rental for this premises including no rental for July and August while Tiffany is setting up as this new building was occupied by Coventry's admin and financing division before vacating on the 30th of June 2020 and had to be re- structured for Tiffany's purposes. Year-end of Coventry Limited is 31st of December. Required: 1. Explain how the building should be accounted for in the financial statements of Coventry Limited (5) 2. Prepare the journal entries in the books of Coventry Limited for the year ended 31st December 2020 for the transactions noted above. (15) Please include dates, narrations and all workings as marks awarded for this