Red Ltd has the following land and buildings in its accounts as at 30 June 2016: An
Question:
Red Ltd has the following land and buildings in its accounts as at 30 June 2016:
An independent valuation carried out on 30 June 2016 determined the following fair values: land in Darwin $600 000, land in Perth $1 000 000, buildings $500 000. At 30 June 2016, prior to the independent valuation, the balance of the Revaluation Surplus account was $400 000, of which $300 000 related to the land in Perth and $100 000 related to the buildings. Assume depreciation has been recorded for the year ending 30 June 2016.
Required
Record all entries relating to the revaluation of the assets on 30 June 2016.
Step by Step Answer:
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong