On 30 June 2021, Evan Ltd's Balance Sheet showed the following non-current assets after charging depreciation:...
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On 30 June 2021, Evan Ltd's Balance Sheet showed the following non-current assets after charging depreciation: Building $900,000 Accumulated depreciation (150,000) Carrying amount $750,000 Equipment $200,000 Accumulated depreciation (60, 000) Carrying amount $140, 000 Evan Ltd has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $14, 000. On 30 June 2021, an independent valuer assessed the fair value of the building to be $725, 000 and the equipment to be $180,000. The income tax rate is 30%. Required: Prepare all necessary journal entries to revalue the building and the equipment at 30 June 2021. (10 marks) On 30 June 2021, Evan Ltd's Balance Sheet showed the following non-current assets after charging depreciation: Building $900,000 Accumulated depreciation (150,000) Carrying amount $750,000 Equipment $200,000 Accumulated depreciation (60, 000) Carrying amount $140, 000 Evan Ltd has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $14, 000. On 30 June 2021, an independent valuer assessed the fair value of the building to be $725, 000 and the equipment to be $180,000. The income tax rate is 30%. Required: Prepare all necessary journal entries to revalue the building and the equipment at 30 June 2021. (10 marks)
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ANSWER The following entries shall be passed to revalue the Buildin... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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