On 1 July 2020 Big Wednesday Ltd acquired land at a cost of $1 000 000....

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On 1 July 2020 Big Wednesday Ltd acquired land at a cost of $1 000 000. Big Wednesday Ltd makes the following estimates of the value of the land: Net selling price ($) 900 000 900 000 920 000 Value in use ($) 1 050 000 960 000 900 000 Fair value 950 000 950 000 970 000 a) Determine the recoverable amount of the land for each reporting date. b) Assume that Big Wednesday Ltd uses the cost method. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards. c) Assume that Big Wednesday Ltd revalues its land at the end of each year. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards On 1 July 2020 Big Wednesday Ltd acquired land at a cost of $1 000 000. Big Wednesday Ltd makes the following estimates of the value of the land: Net selling price ($) 900 000 900 000 920 000 Value in use ($) 1 050 000 960 000 900 000 Fair value 950 000 950 000 970 000 a) Determine the recoverable amount of the land for each reporting date. b) Assume that Big Wednesday Ltd uses the cost method. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards. c) Assume that Big Wednesday Ltd revalues its land at the end of each year. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards