At December 31, 2017, the end of its first year of operations, Franklin SA chose to use

Question:

At December 31, 2017, the end of its first year of operations, Franklin SA chose to use the revaluation framework allowed under IFRS. Franklin's ledger shows Equipment €750,000 and Accumulated Depreciation-Equipment €150,000.

Instructions

(a) Independent appraisers determine that the plant assets have a fair value of €660,000. Record the revaluation.

(b) Using your answer from part (a), what would be the amount of Franklin's 2018 depreciation? Assume no change in the value of Franklin's equipment in 2018, a 4-year remaining life, and no residual value.

(c) Independent appraisers determine that the plant assets have a fair value of €520,000. Record the revaluation. (Ignore your answers to parts (a) and (b).)

(d) Using your answer from part (c), what would be the amount of Franklin's 2018 depreciation? Assume no change in the value of Franklin's equipment in 2018, a 4-year remaining life, and no residual value.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 50% (6 reviews)

a Accumulated Depreciation x Equipment 150000 Equipment 9...View the full answer

Answered By

Shameen Tahir

The following are details of my Areas of Effectiveness. The following are details of my Areas of Effectiveness English Language Proficiency, Organization Behavior , consumer Behavior and Marketing, Communication, Applied Statistics, Research Methods , Cognitive & Affective Processes, Cognitive & Affective Processes, Data Analysis in Research, Human Resources Management ,Research Project, Social Psychology, Personality Psychology, Introduction to Applied Areas of Psychology, Behavioral Neurosdence , Historical and Contemporary Issues in Psychology, Measurement in Psychology, experimental Psychology, Business Ethics Business Ethics An introduction to business studies Organization & Management Legal Environment of Business Information Systems in Organizations Operations Management Global Business Policies Industrial Organization Business Strategy Information Management and Technology Company Structure and Organizational Management Accounting & Auditing Financial Accounting Managerial Accounting Accounting for strategy implementation Financial accounting Introduction to bookkeeping and accounting Marketing Marketing Management Professional Development Strategies Business Communications Business planning Commerce & Technology Human resource management General Management Conflict management Leadership Organizational Leadership Supply Chain Management Law Corporate Strategy Creative Writing Analytical Reading & Writing Other Expertise Risk Management Entrepreneurship Management science Organizational behavior Project management Financial Analysis, Research & Companies Valuation And any kind of Excel Queries.

4.70+ 16+ Reviews 34+ Question Solved

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-1118978085

IFRS 3rd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

See More Books

Question Posted: Apr 07, 2017 11:18 AM

See More Questions

At December 31, 2017, the end of its first year of operations, Franklin SA chose to use

Question:

Step by Step Answer:

a Accumulated Depreciation x Equipment 150000 Equipment 9...View the full answer

Financial Accounting

Students also viewed these Cost Accounting questions