Peasy Limited purchased a specialized item of plant, details of which are as follows: Cost ( purchased
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Question:
Peasy Limited purchased a specialized item of plant, details of which are as follows:
Cost purchased on credit R
Date of purchase January
Useful life years
Residual value Nil
Depreciation method Straight line
This item of plant is measured under the revaluation model and had the following fair values:
January R
January R
Peasy Limited transfers the realized portion of the revaluation surplus to retained earnings over the useful life of the plant.
REQUIRED
Prepare the journals for the plant for the year ended December to assuming:
a The gross replacement value method is used.
bThe net replacement value method is used.
Related Book For
Fundamental Accounting Principles
ISBN: 978-0071051507
Volume I, 14th Canadian Edition
Authors: Larson Kermit, Tilly Jensen
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