On $31$ December $2023,$ the statement of financial position of Dominic Ltd showed the following

non$-$current assets after charging depreciation.

Leasehold land $ $800000$

Accumulated depreciation $(400000)$ $ $400000$

Equipment $ $340000$

Accumulated depreciation $(180000)$ $ $160000$

The company has adopted fair value for the valuation of non$-$current assets, as per the

revaluation method. On $31$ December $2023,$ an independent valuer assessed the fair value of

the leasehold land to be $$420000$ and the equipment to be $$100000.$ The Asset Revaluation

Surplus Account balance on $31$ December $2023$ is $$15,000$ before the revaluation takes place.

Required

$1.$ Prepare any necessary entries to revalue the leasehold land and the equipment as at

$31$ December $2023.$

Hint: Show separate entries for revaluation gain or loss, you may only offset current year$$s

loss with asset revaluation surplus balance amount before the revaluation took place.

$2.$ Assume that the leasehold land and equipment had remaining useful lives of $20$ years

and $5$ years respectively, with zero residual value. Prepare entries to record

depreciation expense for the year ended $31$ December $2023$ using the straight$-$line

method for both leasehold land and equipment.