XYZ Inc is going through a reorganization and will do a comprehensive revaluation of its assets...

Transcribed Image Text:

XYZ Inc is going through a reorganization and will do a comprehensive revaluation of its assets and liabilities. Its assets have net book values of $517,037 for land, $372,501 for buildings, and $47,001 for goodwill. Under the reorganization plan, the fair values of these assets are determined to be $404,221 for land and $287,893 for buildings, while the goodwill will be completely written off. How much will be debited or credited to the Reorganization Account under this comprehensive revaluation of assets and liabilities? a $244,425 b. $238,314 Oc. $232,204 O d. $226,093 e. $219,983 XYZ Inc is going through a reorganization and will do a comprehensive revaluation of its assets and liabilities. Its assets have net book values of $517,037 for land, $372,501 for buildings, and $47,001 for goodwill. Under the reorganization plan, the fair values of these assets are determined to be $404,221 for land and $287,893 for buildings, while the goodwill will be completely written off. How much will be debited or credited to the Reorganization Account under this comprehensive revaluation of assets and liabilities? a $244,425 b. $238,314 Oc. $232,204 O d. $226,093 e. $219,983

Answer rating: 100% (QA)

Journal entry Date Account and Explanation Debit credit Reorganization All DJ 8460... View the full answer