Land and buildings: Cost (including ¢60m land). ¢380000 Accumulated depreciation at 1/1/2020 ¢64000 The company decided to change its accounting policy with respect to its 10 year old land and buildings from the cost model to the revaluation model. The revalued amounts at 1 January 2020 were GH¢800m (including GH¢100m for the land). No further revaluation was necessary at 31 December 2020. The company wishes to treat the revaluation surplus as being realised over the life of the asset. Your are required to account for the above information.

Land and buildings: Cost (including ¢60m land). ¢380000 Accumulated depreciation at 1/1/2020 ¢64000 The company decided to change its accounting policy with respect to its 10 year old land and buildings from the cost model to the revaluation model. The revalued amounts at 1 January 2020 were GH¢800m (including GH¢100m for the land). No further revaluation was necessary at 31 December 2020. The company wishes to treat the revaluation surplus as being realised over the life of the asset. Your are required to account for the above information.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?
Land Acquisition date 1 Jan 2016 Cost Price (RM) 500,000 Residual Value (RM) Useful Life indefinite Basis of Measurement Revaluation model Depreciation method Not applicable 31 December 2020 fair value of the land is RM480,000. It was revalued to RM530,000 last year. Annual revaluation is necessary. Balance in the revaluation reserve account on 1 January 2020 was RM40,000 (credit). Accounting year end 31 December every year Determine the value of the land that should appear in the Statement of Financial Position as at 31 December 2020 Select one: a. RM570.000 O b. RM490,000 Oc. RM530.000 d. RM480.000
Presented below is information related to equipment owned by Oriole SpA at December 31, 2022. Cost Accumulated depreciation to date Value-in-use Fair value less cost of disposal (a) €10,620,000 Oriole intends to dispose of the equipment in the coming year. As of December 31, 2022, the equipment has a remaining useful life of 4 years. Date 1,180,000 Dec. 31 8,260,000 5,192,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2022. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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Equipment R20 000, Accumulated Depreciation R16 000. Depreciation is calculated at 20% p. a. on a diminishing method. An old equipment was disposed for R1 500 cash on 1 December 2020. The equipment originally costed R3 000. The Accumulated depreciation is R 700.The depreciation for the disposed equipment is _________.A. R460B. R345C. R225D. R92
On 31 December 2022 Fraser Ltd's statement of financial position shows motor vehicles at a cost price of $400 000 less accumulated depreciation $100 000. Fraser Ltd uses the cost model to value its assets. On 31 December 2022 an estimate is made that the recoverable amount of the vehicles is $270 000. Under AASB 136, Impairment of Assets, the accounting entry to record the write down of the motor vehicles to recoverable amount is which of the following? O No entry is required DR Impairment loss on motor vehicles (expense) $130 000; CR Accumulated depreciation $130 000 DR Impairment loss on motor vehicles (expense) $30 000; CR Motor vehicles $30 000 DR Impairment loss on motor vehicles (expense) $30 000; CR Accumulated depreciation and impairment losses $30 000
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The following information has been provided about an asset: Accumulated depreciation (as at June 30, 2021): $59,650Original asset cost: $147,500If the asset is sold on July 1, 2021 for $74,500, there would be a: Question 4 options: Loss of $14,850 Gain of $14,850 Loss of $13,350 Gain of $13,350
Subject: Advance finance accounting Q) An item of depreciable machinery is acquired on 1 July 2016 for $280 000. It is expected to have a useful life of 10 years and a zero-residual value (straight-line). On 1 July 2020, it is decided to revalue the asset to its fair value of $150 000.Required:Provide journal entries to account for the revaluation.
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