the valuation of land (The financial statements will be prepared in accordance with Australia Accounting Standards; the monetary unit is the Australian dollars. )

Portable Energy treats land, equipment, and greenhouses as separate asset classes. Since its inception, the company has used the cost model for valuing property, plant, and equipment. However, management now believes that the revaluation model for both land and equipment is more appropriate, under the presumption that fair value presents more relevant financial information to the potential investors. Some financial information, prepared by Portable Energy's accountant, is presented in Tables 1 and 2. The company treats the payments associated with the use of Retail Unit A in the department store part of its operating expenses.

La ml for Growing Purposes At the end of Bill 5, Portable Energy paid $30,000 for one acre of land on the outskirts of Dandenong South. An active market exists for similar pieces of land in the region; Portable Energy can access the markets at any time. Management believes the fair value estimate for the land should be elassified as Level 1 in the fair value hierarchy. They are fairly eer'tain that the land would not sell for less than Sl, less selling costs of $5,{}{l{} and greenhouse removal costs of $2,013}. As such, they propose that the land he reported at a fair value of $93,00, i.e., at their assessment of its fair value less costs of disposal. The recent selling prices of land in the area are presented in Table 3.TABLE 1 Statement of Comprehensive Income as Prepared by Management For the Year Ended June 30 2017 2018 Sales revenue $200,000 $360, 000 Cost of sales: variable costs of production 150,000 270,000 Cost of sales: fixed costs of greenhouse operations 30,000 30,000 Cost of sales: fixed costs of production operations 30,000 30,000 Cost of sales: depreciation expense 20,194 20, 194 Gross profit (30,194) 9,806 Administrative and operating expenses 100,000 100, 000 Net loss (130,194) (90, 194) Other comprehensive income - equipment revaluation (180,151 - 88,572) 91,579 Other comprehensive income - land revaluation (93,000 - 80,000) 13,000 Comprehensive income (loss) (130,194) 14,385TABLE 2 Operating Assets as Drafted by Management 2017 2018 Land (2017 at cost, 2018 at fair value) $80,000 $93,000 Production equipment (2017 at cost; 2018 at fair value) 120,000 180,151 Less accumulated depreciation (15,714) 0 Greenhouses, at cost 1 12,000 112,000 Less accumulated depreciation (25 years) (8,960) (13,440) Subtotal 287,326 371,711 Capitalized greenhouse costs: Growing environment 12,000 12,000 Dragon fruit seeds 2,000 2,000 Total greenhouse costs 14,000 14,000 Total operating assets 301,326 385,711TABLE 3 Valais Land Market (Active) Market/Region Price/Acre Dandenong $85,000 Springvale $60,000 Berwick $70,000