Moon also owns some land, which was purchased at a cost of $5,000,000 on 30 June 2012. After carrying the land at cost, on 30 June 2015 Mood decides to use revaluation model, as the area has strongly increased in market value. After one year, on 30 June 2016, due to a flood, the attractiveness of the area has dropped.

As the accountant of Moon, please support the company in the decisions and accounting of the revaluation of the land on 30 June 2015 and 30 June 2016, using the following

1) Determine which one among the three values provided is the value to be used on 30 June 2015 and 2016 to carry the land according to revaluation model.

2) After the acquisition in 2012, on 30 June 2015, how much is the carrying amount of the land?

3) Account for the land on 30 June 2016, showing all workings necessary and the previous calculations to derive your answer

4) Assume that the managers of Moon in 2015 were trying to obtain a relevant loan from ANZ Bank and the Bank was mainly checking on the solvability of the company through the Debt/Assets ratio. Can you critically link the adoption of the revaluation model by the company and this potential loan agreement?