Willow is a public limited company and would like advice in relation to the following transactions.

On 1 June 20X1, Willow acquired a property for $5 million and annual depreciation of $500,000 is charged on the straight-line basis with no residual value. At the end of the previous financial year of 31 May 20X3, when accumulated depreciation was $1 million, a further amount relating to an impairment loss of $350,000 was recognised, which resulted in the property being valued at its estimated value in use. On 1 October 20X3, as a consequence of a proposed move to new premises, the property was classified as held for sale. At the time of classification as held for sale, the fair value less costs to sell was

$3.4 million. At the date of the published interim financial statements, 1 December 20X3, the property market had improved and the fair value less costs to sell was reassessed at $3.52 million and at the year end on 31 May 20X4 it had improved even further, so that the fair value less costs to sell was $3.95 million. The property was sold on 5 June 20X4 for $4 million.

Required

Discuss how the above items should be dealt with in the financial statements of Willow.