Question 3 On 1 January 2023, Bello Ltd acquired an office building for...
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Question On January Bello Ltd acquired an office building for R as an investment property. The company uses the fair value model for its investment properties and has a financial yearend of December. During the year, the following events occurred: Bello Ltd spent R to build a new conference hall within the building. which will be rented out under an operating lease. Bello Ltd replaced the office building's heating system, which had been damaged by a fire. The cost of replacement was R The old heating system had a fair value of R before the fire. The company paid to replace broken windows and doors that wer damaged due to wear and tear. The company incurred R for routine maintenance services, includin cleaning and painting. Additional Information: All amounts are considered material. Ignore taxation. equired: Prepare the journal entries for each transaction above. Briefly explain the accounting treatment for capital improvements, repair writeoffs under the fair value model for investment properties. 
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On January Bello Ltd acquired an office building for R as an investment property. The company uses the fair value model for its investment properties and has a financial yearend of December.
During the year, the following events occurred:
Bello Ltd spent R to build a new conference hall within the building. which will be rented out under an operating lease.
Bello Ltd replaced the office building's heating system, which had been damaged by a fire. The cost of replacement was R The old heating system had a fair value of R before the fire.
The company paid to replace broken windows and doors that wer damaged due to wear and tear.
The company incurred R for routine maintenance services, includin cleaning and painting.
Additional Information:
All amounts are considered material.
Ignore taxation.
equired:
Prepare the journal entries for each transaction above.
Briefly explain the accounting treatment for capital improvements, repair writeoffs under the fair value model for investment properties.
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