InnoTech Ltd (IT) is engaged in manufacturing of video game consoles. On 1 October 2016 IT began the construction of a new factory on a piece of freehold land. Costs information relating to the land and factory were as follows during the year ended 31 March 2017: s'ooo Purchase of land on which to build the factory 20,000 Cost of levelling the land prior to beginning construction 850 Cost of materials needed to construct the factory 7.500 Monthly employment costs of the construction staff from 1 Oct 2016 Note 500 Monthly amount of administrative overheads allocated to the Note 200 construction from 1 Oct 2016 Payments to external advisors relating to the construction 500 Costs relating to the public opening of the factory Note 200 Note: Construction work was suspended for the entire month of December 2016 and was completed on 28 February 2017 but the factory was not ready for use until 31 March 2017, when the factory was inspected by local government officials and certified as safe for use. The factory was not actually brought into use until 31 May 2017, following a public opening ceremony. The factory has an estimated useful life of 40 years. However, the roof (as part of the factory) has a useful life of 20 years with cost of $2.4 million as at 28 February 2017. On 1 April 2016, IT purchased a new head office property for $60 million and rented out the top three floors of the property to a third party on a long-term rental. The top three floors of the property were capable of being sold in a separate transaction for capital appreciation. The remainder is used for owner-occupied purpose. On 1 April 2016, the directors of IT estimated that the initial cost of the property should be allocated as follows for accounting purposes based on their relative standalone prices: $'000 Top three floors of building 15,000 Remainder-buildings component only 45,000 Total initial cost 60,000 The property as a whole had an estimated total fair value of $64 million and $56 million on 31 March 2017 and 31 March 2018 respectively. The directors consider that 25% of this fair value was attributable to the top three floors of the property. IT he owner-occupied property over an estimated useful life of 50 years, with no estimated residual value. The estimated useful life after revaluation on 31 March 2017 is revised to 48 years. Required: Compute the carrying amount of the land and factory in the statement of financial Camtal position of IT as at 31 March 2018. You should support your computations with appropriate explanations of the amount you have included for the cost of the land and factory separately. IT adopts cost model for land and factory. The policy of IT is to calculate depreciation on a monthly basis using straight-line method. (13 marks) (b) Prepare the journal entries of the head office property in the preparation of the financial statements of IT for the year ended 31 March 2018. IT adopts revaluation model for owner-occupied property and fair value model for investment property. The policy of it is to calculate depreciation on a monthly basis using straight-line method. IT opts for transfer from revaluation reserves to retained earnings only upon derecognition. (12 marks) a