An entity revalued its land and buildings at the start of the year to $60 million...

 

Transcribed Image Text:

An entity revalued its land and buildings at the start of the year to $60 million ($15 million for the land). The property cost $30 million ($6 million for the land) ten years prior to the revaluation. The total expected useful life of 40 years remained unchanged. The entity's policy is to make an annual transfer of realized amounts to retained earnings. Required: Show the effects of the above on the financial statements for the year. An entity revalued its land and buildings at the start of the year to $60 million ($15 million for the land). The property cost $30 million ($6 million for the land) ten years prior to the revaluation. The total expected useful life of 40 years remained unchanged. The entity's policy is to make an annual transfer of realized amounts to retained earnings. Required: Show the effects of the above on the financial statements for the year.

Answer rating: 100% (QA)

The revaluation of land and buildings will have several effects on the financial statements of the e... View the full answer