S Ltd anticipated that its assets may be impaired in June 2022. Land is measured by S Ltd at fair value. At 30 June 2022, the entity revalued the land to its fair value of $15 000. The land had previously been revalued upwards by $3 000. As a result of its impairment testing,S Ltd calculated that the recoverable amount of the entitys assets was $146 500. The carrying amounts of the assets of S Ltd prior to adjusting for the impairment test and the revaluation of the land were as follows.

Non-current assets

Plant and equipment 585 000

Accumulated depreciation (292 500)

Land (at fair value 1/7/2021) 55 500

Buildings $360 000

Accumulated depreciation (72 000)

Goodwill 25 000

Accumulated impairment losses (12 500)

Trademarks labels 30 000

Current assets

Cash 5 500

Receivables 7 200

Required:

1. Prepare the journal entries required on 30 June 2022 in relation to the measurement of the assets of Raj Ltd.

2. Assume that, as the result of the allocation of the impairment loss, the plant and equipment was written down to $266 000. If the fair value less costs of disposal of the plant and equipment was determined to be $250 000, outline the adjustments, if any, that would need to be made to the journal entries you prepared in part 1 of this question, and explain why adjustments are or are not required.