that is the whole question

1. Matisse plc purchased a new building on 1st July 2013 for 1,200,000. The building was estimated to have a useful economic life of 25 years and was depreciated on a straight line basis assuming no residual value. 2. On the 30th June 2018, the property was revalued to 1,250,000. It was not necessary to extend the original assessment of useful economic life. 3. Matisse plc has opted to make the transfer between the revaluation account and retained earnings during the lifetime of the asset. 4. On the 30th June 2020 the property was damaged and an impairment review was carried out. An external valuer advised that the property had a fair value less selling costs of 990,000. The management accountant calculated the net future cash inflows the property would generate would be 170,000 per year for the next 7 years though beyond 5 years the cash flows are uncertain. Annuity factors for the market rate of interest are as follows: 5 year 7 year 4.329 5.786 You may round to the nearest '000. Requirements a. Show the movements on the carrying value of the property from 1st July 2013 to 30th June 2020. (4 marks) b. Show the movements on the revaluation reserve from 30th June 2018 to 30th June 2020. (4 marks) C. Revaluation of assets is an optional accounting policy. However, companies choosing to use revaluations must comply with additional rules in IAS 16 Property, Plant and Equipment. State TWO rules with respect to revaluations that Matisse must follow in order to comply with IAS 16. (2 marks)