Question 3 (50 marks) The following information is available for Heritage Limited l. The reporting period of Heritage Ltd ends on 30 June of every year. The following balances are available as at 30 June 20x8 Land and building at cost 400000 Accumulated depreciation on buildings at 01/07/20x7 Furniture at cost Accumulated depreciation as at 01/07/20x7 Vehicles at cost Accumulated depreciation as at 01/07/20x7 Investments as at 01/07/20x7 12 000 10 000 300 000 60 000 34 000 96 700 20 000 275 000 280 000 an Trade and other receivables Ordinary share capital Preference share capital Retained earnings as at 01/07/20x7 Replacement reserves 1090 Bank loan Payables 58 250 100 000 33 500 Additional information: The buildings are occupied for the purposes of the activities of the entity and are accounted for in terms of the cost model. At the date of acquisition, 01 July 20x6, the land was valued at N$ 100000 and buildings at NS 300 000. Depreciation is written off on buildings at 4% per annum on the straight line method. Furniture and vehicles were purchased on 01 July 20x6 at N$ 80 000 and N$ 300 000 respectively. Depreciation is written off on furniture at 12,5% per year on cost and on 1. 2. Page 12 of 21