Assume a client uses IFRS reporting and has a machine that costs $100,000 on 1/1/2021. Depreciation is
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Question:
Assume a client uses IFRS reporting and has a machine that costs $100,000 on 1/1/2021. Depreciation is 10% per year with no salvage value.
The fair value is:
$180,000 on 1/1/2022
$60,000 on 1/1/2023
$77,000 on 1/1/2024
$120,000 on 1/1/2025
The company’s policy is to transfer the realized portion of the revaluation surplus to retained earnings as the asset is used.
Prepare a schedule that shows the statement of financial position and ledger accounts for each year ending December 31, 2021, to 2025. Prepare the asset’s account as a net carrying amount (do not separate cost and accumulated depreciation accounts).
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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