Question: how do you do this step by step ? City Centre plc is an international property company. The buildings it owns are recorded in the
City Centre plc is an international property company. The buildings it owns are recorded in the statement of financial position (balance sheet) at 804m, being historical cost of 965m less accumulated depreciation of 161m. The recent report of a professional valuer has indicated that the property is valued at 1,052m on an open-market basis for its existing use. The company wishes to value the building at open-market value. Column 1 shows the statement of financial position of City Centre plc using historical cost valuation for the buildings (Complete the necessary drop downs. Fill in the relevant cells with their corresponding figures.) Assume the company changes from historical cost to market values when reporting the value of its buildings Complete the capital and reserves' section of its statement of financial position by selecting the appropriate caption Complete column 2 with numbers that reflect the recognition of market values for the buildings Column 1 Buildings valued at cost Column 2 Buildings valued at market value Em Em Statement of financial position (balance shoot) Building Other assets less liabilities 804 706 1,510 Capital and reserves Ordinary shares 530 Retained earnings 980 1,510
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