The following cases are independent of one another:

Case 1

On 26 June 2019, Warna Company decided to relocate from an office in location A to another building that it owns in location V. The office in location A was purchased 5 years ago at Dh500,000 and has an accumulated depreciation of Dh125,000. The office is to be retained for investment potential and the fair value at 30 June 2019 was Dh350,000. The companys financial year end is on 30 June.

Case 2

During its financial year ending 30 September 2019, Daun Company decided to relocate its office in location C to its building in location D. The carrying value of the office in location C on 30 September 2019 was Dh770,000 and is to be retained for its investment potential. The office has been revalued 2 years ago and the balance in the income statement due to the deficit on the revaluation of the property is Dh120,000. On 30 September 2019, the property was revalued at Dh990,000.

Case 3

On 2 February 2019, Antah Company acquired land and building for Dh48 million. Other costs associated with the property amounted to Dh2 million. The building has 15 floors and Antah Company only used the 15th floor. The remaining floors were rented to its subsidiary, Zorro Company. The fair values of the property at 30 June 2019 and 30 June 2020 were Dh55 million and Dh51 million, respectively. The useful life of the building was estimated to be 25 years. Antah Company adopts the fair value model and the financial year end is on 30 June.

Required:

a) For Case 1 and Case 2, provide the relevant journal entries in accordance with International Accounting Standard (IAS) 40 Investment Property. (4 marks)

b) For Case 3, explain whether the property of Antah Company can be classified as an investment property and state its carrying amount on the date of acquisition. (2 marks)