In late September 2020, Tom's Company acquires the following items from another entity for $600,000 cash: land,

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Question:

In late September 2020, Tom's Company acquires the following items from another entity for $600,000 cash: land, building, and equipment. In addition to the acquisition price, stamp duty of $20,000, clean-up of hazardous pollution on the land of $35,000, and safety repairs and upgrades on the equipment of $8,000 were incurred. These assets are not part of a business combination. Fair values for the acquired assets were estimated as follows: Fair values Land $350,000 Building $150,000 Equipment $250,000 The building is estimated to have a useful life of 20 years with residual value of $10,000. The economic benefits of the building are expected to be used in equal amounts over its life. The equipment is estimated to have a useful life of 10 years with residual value of $5,000. The majority of the economic benefits of the equipment are expected to be consumed in the earlier years of its useful life. Initially, Tom expects to employ the cost model to all three assets for the purposes of valuation subsequent to acquisition. Late-March 2021: Tom paid $3,500 for repairs and maintenance for the equipment. Early-July 2021: A significant renovation of the building was completed at a cost of $30,000. The renovation is expected to provide the building with a useful life of 25 years. This involved the scrapping of an old kitchen with carrying value of $4,000.

30 June 2022: evidence is available that the recoverable amount for the land is $320,000; the recoverable amount for the building is $140,000; the recoverable amount for the equipment is $150,000.  1 July 2022: Tom adopts the revaluation model for the three assets.

30 June 2023:

Carrying amounts for the assets are considered to be in line with fair value at this time.

30 June 2024:

The following fair values are established for the assets:

land $360,000;

building $140,000;

equipment $50,000.

30 June 2025:

Carrying amounts for the land and equipment are considered to be in line with fair values.

The fair value for the building is $125,000.

Late September 2025: Tom sells the equipment for $40,000 cash.

Required: Applying the requirements of AASB116 Property, Plant, and Equipment; AASB 136 and any other relevant Australian accounting standard, provide the general journal entries to record all relevant events outlined above. Assume depreciation is provided for annually on 30 June of each year. Provide detailed narrations to outline any assumptions and show workings.