Chan Corporation adopts revaluation accounting for its equipment that is used in operation of the business....

 

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Chan Corporation adopts revaluation accounting for its equipment that is used in operation of the business. The equipment was purchased on January 1, 2019 for $620,000. It has 5-year useful life with $20,000 residual value. The company has the following information related to the equipment. Assume that the estimated useful life and residual value do not change during the periods and the company uses straight-line method of depreciation. Round all answers to the nearest dollar. Date January 3, 2019 December 31, 2019-¹ December 31, 2020< December 31, 2021 Fair Value $620,000 540,000 380,000 240,000 Based on IFRS, Chan Corporation transfers from AOCI to Retained Earnings or from Retained Earnings to AOCI the difference between depreciation based on the revalued carrying amount of the equipment and depreciation based on the asset's original cost. Instructions: Prepare the journal entries for Chan Corporation for the following transactions. (round your answer to the nearest dollars) a. Purchase of equipment on 1-1-2019.< b. Adjusting entries related to the equipment on 12-31-2019.< c. Adjusting entries related to the equipment on 12-31-2020. d. Adjusting entries related to the equipment on 12-31-2021. Chan Corporation adopts revaluation accounting for its equipment that is used in operation of the business. The equipment was purchased on January 1, 2019 for $620,000. It has 5-year useful life with $20,000 residual value. The company has the following information related to the equipment. Assume that the estimated useful life and residual value do not change during the periods and the company uses straight-line method of depreciation. Round all answers to the nearest dollar. Date January 3, 2019 December 31, 2019-¹ December 31, 2020< December 31, 2021 Fair Value $620,000 540,000 380,000 240,000 Based on IFRS, Chan Corporation transfers from AOCI to Retained Earnings or from Retained Earnings to AOCI the difference between depreciation based on the revalued carrying amount of the equipment and depreciation based on the asset's original cost. Instructions: Prepare the journal entries for Chan Corporation for the following transactions. (round your answer to the nearest dollars) a. Purchase of equipment on 1-1-2019.< b. Adjusting entries related to the equipment on 12-31-2019.< c. Adjusting entries related to the equipment on 12-31-2020. d. Adjusting entries related to the equipment on 12-31-2021.

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When the book value is less than the Fair value means the asset is appreciated So the value of Asset ... View the full answer