Kmart Ltd is preparing its end of year financial statements at 30 June 2020. Kmart Ltd is preparing its end of year financial statements at 30 June 2020. Kmart Ltd recently purchased Premises to use...

Kmart Ltd is preparing its end of year financial statements at 30 June 2020.

Kmart Ltd is preparing its end of year financial statements at 30 June 2020.

Kmart Ltd recently purchased Premises to use as its central warehouse distribution centre in Melbourne from where is handles on-line sales. At the time the residual was $24,000,000.Kmart Ltd uses the straight-line method of depreciation and the revaluation model for recording Premises.

At 30 June 2019 the carrying amount of the Premises was $38,400,000
At 30 June 2020 the fair value of the Premises was $42,000,000

There was a downward revaluation of the Premises by $2,400,000 last year
The remaining useful life of the Premises at 30 June 2019 was 16 years

Required

Prepare general journal entries for the Premises for the year ended 30 June 2020. Justify your answer according to AASB 116