TUTORIAL QUESTION 1 - IAS40- Toot-Toot Ltd is a South African company which manufactures electric toy trains. They havea 31 December financial year end. Toot-Toot Ltd acquired land and a manufacturing building on 1 January 2014 at a cost (and base cost) of R2 000 000 (Land R740 000 and building R1 260 000) to house their manufacturing plant. During the end of 2014 beginning of 2015 Toot-Toot Ltd underwent a massive growth spurt which necessitated that they had to acquire new land and buildings on 31 May 2015 to accommodate their increased manufacturing activities. Toot- Toot Ltd decided to lease the old property to Tracks Ltd in terms of an operating lease. It is Toot-Toot Ltd's policy to account for Land classified under PPE on the revaluation model and manufacturing buildings using the cost model. Manufacturing buildings is depreciated on a straight-line basis over their useful lives taking into account their respective residual values (the above mentioned building have an estimated useful life of 15 years and its residual value is deemed to be insignificant). Toot-Toot Ltd accounts for its investment property using the fair value model. The fair value of the land and buildings are as follows: Date 31 December 2014 31 May 2015 31 December 2015 Lan d Buildings R775 000 R1 323 000 R815 000 R1 141 000 R875 000 R1 366 000 Required: Provide all the necessary journal entries to account for the land and buildings in the accounting records of Toot-Toot Ltd for the financial years ending 31 December 2014 and 31 December 2015. Show all calculations as marks will be awarded