Study the scenario below and answer the question that follows:

Prosper Ltd On 31 December 2022, Prosper Ltd revalued its plant to net replacement cost. The company has elected to realise the revaluation surplus while the asset is being used and to off set the accumulated depreciation against the gross carrying amount of the asset on revaluation. No other assets have been revalued. The company depreciates its plant on the straight-line basis over its estimated useful life. Depreciation for the current year must be calculated on the most recent revalued amount.

Details of plant:

Cost price R900 000 (purchased 1 January 2020)

Residual value R0

Useful life 10 years

Net replacement cost R735 000 (31 December 2022)

The residual value and useful life of the plant did not change. Assume a tax rate of 28%.

Required Prepare the general journal entries relating to the above information for the year ended 31 December 2022. Journal narrations are not required.

Prosper Ltd On 31 December 2022, Prosper Ltd revalued its plant to net replacement cost. The company has elected to realise the revaluation surplus while the asset is being used and to off set the accumulated depreciation against the gross carrying amount of the asset on revaluation. No other assets have been revalued. The company depreciates its plant on the straight-line basis over its estimated useful life. Depreciation for the current year must be calculated on the most recent revalued amount. Details of plant: The residual value and useful life of the plant did not change. Assume a tax rate of 28%. Source: Daniels, J.C. 2023. Required Prepare the general joumal entries relating to the above information for the year ended 31 December 2022 . Journal narrations are not required