ABC Company provides the following information as of December 31, 2001.

Equipment cost $100,000

Purchase date January 1, 2001

Valor Residual $0

useful life 5 years

Fair value at the end of the first year $84,000.

As of December 31, 2003, the market value of the asset is $30,000.

Requires: Use the Revaluation Model of IAS 16 Proportional Method and Elimination Method to determine:

1. Amount of revaluation at the end of the 2001 financial year .

2. Show the schedule of operating assets from 2001 to 2003.

3. Determine the new depreciation expense . (2002 and 2003)

4. Determine the book value of the assets in the year before any adjustment (2003) and after the adjustment ( 2003 ) .

5. What is the amount of revaluation assets at the end of 2003 ? explain

Answer rating: 100% (QA)

1Amount of revaluation at the end of the 2001 financial year The revaluation amount is the difference between the fair value of the equipment at the e... View the full answer