QUESTION 3 [40] Laylow Limited is a property investment company in Durban. It specialises in commercial letting of property including corporate buildings, flats and retail shopping outlets. During the recent civil unrest, one of the commercial properties owned by Laylow Limited was destroyed. ArtFood Limited, rented this property directly from Laylow Limited for the last 40 years thus Laylow Limited has had an excellent relationship with them. The building Laylow Limited is currently occupying, is owned by Laylow Limited) and used by them as admin offices. The building has a large first floor and ample parking which will be ideally suited to ArtFood Limited. Laylow Limited has another vacant property which is ideally suited to Laylow Limited to use as their admin building and have been wanting to move the offices for the last few months, Laylow Limited has seen this as an ideal opportunity to move their admin offices from the building and then rent the building out to ArtFood Limited. ArtFood Limited was extremely grateful for this offer and has taken the offer up from the 1" of July 2020. The following details relate to the building that Laylow Limited was occupying and will now be let to ArtFood Limited. Purchased for R1 500 000 on the 1 January 2019 (useful life 50 years) Fair Value of the building R1 550 000 30 June 2020 Fair Value R1 490 000 31 December 2020 During the year, Laylow Limited spent the following amounts on another investment property they own which consists of a block of flats: R25 000 to replace on the globes in the building which blew during a power surge after loadshedding-31 August 2020 R350 000 to build an extra floor on the rooftop to rent out as a penthouse under an operating lease-30 September 2020 Damages to the lift system from the loadshedding- the lift system was quite outdated and therefore cannot be repaired. The lift system had to be replaced at a cost of R85 000. The FV of the damaged lift was R7 000.- 30 September 2020 Laylow Limited uses cost model to measure Property, Plant & Equipment and the Fair Value model to measure Investment Property. Laylow Limited has a 31" December year end. Required: 1. What is difference between an Investment Property & an Owner-Occupied Property (Tip - provide the definition of each type to determine the difference) (5) 2. When will transfers in and out of Investment property occur (list the criteria for a transfer to take place)? (3) 3. Prepare the journal entries in the books of Laylow Limited for the year ended 31" December 2020 for all the transactions as noted above. Please include dates and narrations as marks will be awarded for this. (32)