Sunland Ltd. purchased a building on January 1, 2018 for $14,520,000. Sunland accounted for this asset using the revaluation model and revalued the building every two years. The building was estimated to have a useful life of 30 years with no residual value, and Sunland used straight-line depreciation. On December 31, 2019, the building had a fair value of $13,720,000. On December 31, 2021, the building had a fair value of $12,478,600.

Prepare the journal entries on the books of Sunland Ltd. to revalue the building on December 31, 2019 and December 31, 2021 using the asset adjustment method

 

Date Account Titles and Explanation

December 31 2019

(To adjust depreciation on building.)

(To adjust building.)

Date Account Titles and Explanation

December 31 2020

(To adjust depreciation on building.)

(To adjust building.)

Answer rating: 100% (QA)

Carrying Value on 31 December 2019 Particulars Amount Calculation Cost 14520000 Depreciation for 201... View the full answer