Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine with a cost of $ 2 0 0 0 0 0 & useful life of 8 yearswas acquired at the beginning of year

A machine with a cost of $200000 & useful life of 8 yearswas acquired at the beginning of year 1. The machine isrevalued every 2 years and the revaluation reserve will beregarded as realized only when the machine is sold. Thenet replacement cost of the machine was as follows; Beginning of year 3 $160000 Beginning of year 5 $95000 Beginning of year 7 $50000.
How will the revaluation increases/decreases beaccounted? 

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Okay based on the additional information provided The machine was originally acquired at the beginni... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions

Question

An Example of Data Dictionary for Apartment Rental Property

Answered: 1 week ago

Question

Explain the three approaches by businesses to social responsibility

Answered: 1 week ago

Question

Explain the responsibilities businesses have to stakeholders

Answered: 1 week ago