Company revalued its land and buildings at the start of the year to $ 900,000 ($225,000...

 

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Company revalued its land and buildings at the start of the year to $ 900,000 ($225,000 for the land). The property cost $450,000 ($90,000 for the land) ten years prior to the revaluation. The total expected useful life of 40 years remain unchanged. The entity's policy is to annual transfer of realized amounts to retained earnings. Required: Show the effects of the above on the financial statements for the year. (All calculations should be shown separately) Company revalued its land and buildings at the start of the year to $ 900,000 ($225,000 for the land). The property cost $450,000 ($90,000 for the land) ten years prior to the revaluation. The total expected useful life of 40 years remain unchanged. The entity's policy is to annual transfer of realized amounts to retained earnings. Required: Show the effects of the above on the financial statements for the year. (All calculations should be shown separately)

Answer rating: 100% (QA)

Answer Explanation IOn revalution the below journal entry is passed ... View the full answer