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were allocated to both the buildings of Property B. On 31 March 2020, Pizazza Ltd signed a rental agreement for Building 1, effective from 1

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were allocated to both the buildings of Property B. On 31 March 2020, Pizazza Ltd signed a rental agreement for Building 1, effective from 1 April 2020, with a tenant at a monthly rent of R15 000. The direct operating expenses of Building 1, incurred monthly from 1 March 2020, amounted to R8 500. On 30 June 2020, an independent sworn appraiser determined the fair value of the property to be R5 140 000 (Land: R1 100 000; Building: R4 040 000). Walk-in Fridge On 1 May 2018, Pizazza Ltd purchased a walk-in commercial cold room fridge at a cost of R82 550. The fridge was transported to Property A at a cost of R2 500, whilst an electrician billed R3 250 to ensure that the electrical connection of the walk-in fridge met the National Electrical Code. On acquisition date the management of Pizazza Ltd identified no significant parts of the walk-in fridge. The walk-in fridge was available for use, as intended by management, as well as brought into use, on 1 June 2018. On acquisition date an estimated useful life of 15 years with a residual value of Rnil was allocated to the walk-in fridge. High voltage surges due to load shedding, resulted in premature compressor failure of the walk-in fridge which had to be replaced on 1 July 2019. The cost of the new compressor amounted to R15 000 and was immediately settled in cash. On 1 July 2019, management of Pizazza Ltd estimated that the cost of the original compressor amounted to R14 000. On 1 July 2019, the estimated useful life of the new compressor was determined to be 10 years. Management of Pizazza Ltd considered a possible impairment loss on the walk-in fridge due to the premature compressor failure, but the recoverable amount of the walk-in fridge was not determined to be lower than the carrying amount. The useful life and residual value of the walk-in fridge, excluding the new compressor, remained unchanged throughout the period

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