SizwaBantu Limited acquired three $2$ storey buildings with a view to renting them out. Suitable 

 

tenants have been located. The following costs were incurred when acquiring all these buildings:

 

 

  Purchase price R$1400000$ 

 

  Property transfer taxes R$40500$ 

 

  Attorney costs for legal services R$22000$ 

 

  Borrowing costs R$2560$ 

 

  Start$-$up costs R$15000$ 

 

The accountant at SizwaBantu Limited is unsure of the accounting implications, what to record and

 

related disclosure for these transactions and requested your help with the following.

 

 $3\mathrm{.}1$ What is an investment property? $(5)$ 

 

 $3\mathrm{.}2$ What value is used to measure investment property and what is the definition of this? $(5)$ 

 

 $3\mathrm{.}3$ Describe the initial measurement of investment property $(6)$ 

 

 $3\mathrm{.}4$ Calculate the amount to which these buildings will initially be measured. Support your answer 

 

with appropriate explanations. The company has elected to use the cost model for valuation.

 

$(4)$