Victoria Property Group owns three properties, the financial Accountant, Angel is in the process of finalizing the financial statements for the year ended 31 August 2015. She has been recently appointed because the previous financial accountant resigned. You have requested all the information regarding the properties. Due to her busy schedule she has scrawled some details on a piece of paper: PPE=Cost model Investment Prop=FV model No impairment indicators found when assessed during the year. IF assets to be depreciated use straight-line. Rodeo Drive: Bought 1 Sept 2014 @ N$7,500,000. A portion was allocated to value of the land, calculated at N$825,000. Used as our warehouse. At year end, other similar warehouses in the area @ the same size were being sold for N$9,240,000. Estimated useful life=40 years Residual value=nil Jimmy Walk: Purchased 1 March 2013 to rent out. Cost N$11 220k. Was disclosed @FV of N$ 16 830k in last year's AFS. This year, Victoria upgraded the property (more parking plus extra rentable rooms) at a cost of N$10 230k, resulting in a new municipal valuation at year end of estimated N$31 020k (good indication of FV) and also resulted in increased rent. Estimated Useful life=20 years Residual value=nil Fifth Avenue: This was purchased 8 months ago, at a cost of N$ 13 860k with the intention of capital appreciation. Very specialized property though and seems impossible to measure FV. Currently rented out to animal lobbyist group. Estimated useful life=40 years Residual value N$200,000.00 Required: Describe, giving reasons, how Victoria Property Group should account for these properties in the financial statements for the year ending 31 August 2015