Parnevik Group uses revaluation accounting for a class of equipment it uses in its golf club refurbishing business. The equipment was purchased on January 2, 2015, for €500,000; it has a 10-year useful life with no residual value. Parnevik has the following information related to the equipment.

(Assume that estimated useful life and residual value does not change during the periods presented below.)

Instructions

(a) Prepare all entries related to the equipment for 2015.

(b) Determine the amounts to be reported by Parnevik at December 31, 2016 and 2017, as Equipment, Other Comprehensive Income, Depreciation Expense, Impairment Loss, and Accumulated Other Comprehensive Income.

(c) Prepare the entry for any revaluation adjustments at December 31, 2016 and 2017.

(d) Prepare the entries for the sale of the equipment by Parnevik on January 2, 2018, for €330,000.

Transcribed Image Text:

Date January 2, 2015 December 31, 2015 December 31, 2016 December 31, 2017 Fair Value 500,000 468,000 380,000 355,000