Scientific Pharma Limited (SPL) is a manufacturer of pharmaceutical products. In January 2015, one of its plants suffered a major break down. It was repaired at a cost of $ 1.5 million but the production capacity was reduced significantly. The plant was ready for production on June 30, 2015. At that time the companys engineers advised that the plant could be used at a reduced level for 3 years only. The factory was estimated to have a recoverable amount of $ 19,277,000 at June 30, 2015 Other related information is as under: (i) The plant was imported at FOB price of Z 800,000. The payment was made at the time of shipment on July 1, 2005 at $ 52 per Z. Other charges including installation cost amounted to $ 7 million. Installation of the plant was completed on December 31, 2005 and commercial production commenced from April 1, 2006. (ii) The company uses straight line method of deprecation. Depreciation is charged from the month the asset is available for use up to the month prior to disposal. At the time of purchase, the estimated useful life of the plant was estimated at 15 years whereas the salvage value was estimated at $ 2.0 million. (iii) Based on the report of a professional independent valuer, the plant was revalued on July 1, 2010 at $ 45 million. There was however, no change in estimated useful life of the plant. (iv) The factory remained closed from April 1, to June 30, 2012 due to law and order situation. (v) The salvage value has not changed since it was first estimated at the time of purchase. Required Prepare accounting entries for the year ended June 30, 2015. Give all the necessary calculations. (Ignore taxation)