Maple Corp. owns a building with an original cost of $1,000,000 and accumulated depreciation at the balance

Question:

Maple Corp. owns a building with an original cost of $1,000,000 and accumulated depreciation at the date of $200,000. Based on a recent appraisal, the fair value of the building is $850,000.
Required
1. At what amount will the building be reported on the year-end if Maple follows U.S. GAAP?
2. Does Maple have a choice in the amount to report for the building if instead it follows IFRS? What are those choices?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...