Top front Limited owns two buildings:

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A Head office building located in Cape Town$-$Another building located in Stellenbosch The office building located in Cape Town is used as Top fronts head office. The floods experienced in the Western Cape unfortunately destroyed the head office building on the $30$th June $2022.$ The building was recently purchased on the $1$st January $2022$for R$10200000.$The building has a totaluseful life of $10$ years and a nil residual value. The property in Stellenbosch is leased out to the University. However, it was the university vacation period therefore this building is unoccupied. Topfront, decided to give the university notice of termination of their lease agreement, as they needed to move their head officeto this buildingand the university was not occupying the premises currently and they wouldhave ample time and opportunity to find another premises before the university re$-$opens. The termination of the lease and the re$-$location of Topfront was effective immediately from the $30$thJune $2022.$ Additional Information regarding the property in Stellenbosch:$-$Purchased on the $1$stJanuary $2022$for R$15000000-$On the $30$thJune $2022,$ it had a fair value of R$21000000-$There was no change in fair value at $31$ December $2022-$The total estimated useful life was $10$ years from date of purchase with a nil residual value.Topfront uses the cost model to measure its Property, Plant & Equipment and the fair value model, to measure its Investment properties.

REQUIRED: Prepare the journal entries in Top front Limited's books$,$ taking into account, the above transactions for the year ended $31$st December$2022.$Ignore tax. 

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To prepare the journal entries for Top Front Limiteds books for the year ended December 31 2022 cons... View the full answer