Southerly Ltd has elected to revalue its non-current assets.

Southerly Ltd acquired an item of depreciable equipment on 1 July 2019 for $120 000.

(b) As at 30 June 2021, Southerly Ltd has identified the following values for a parcel of land it has owned for many years.

What value should the land be recorded at in the 30 June 2021 balance sheet? Why?

(note: no journals are required, just an explanation of which value should be used)

The equipment is expected to have a useful life of 10 years, with zero residual value and is depreciated on a straight-line basis.

On 30 June 2021, the equipment was revalued to a fair value of $80 000.

(a) Ignoring any tax effect, provide all journal entries for the period 1 July 2020 to 30 June 2021.