On 30 June 2023, the statement of financial position of Signature Park Ltd showed the following...

 

 

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On 30 June 2023, the statement of financial position of Signature Park Ltd showed the following non-current assets after charging depreciation. Building Accumulated depreciation Motor vehicle Accumulated depreciation $ 700 000 (300 000) $400 000 340 000 (180 000) $160 000 The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $28 000. On 30 June 2023, an independent valuer assessed the fair value of the building to be $420 000 and the vehicle to be $100 000. Hint: Use revaluation method. Required 1. Prepare any necessary entries to revalue the building and the vehicle as at 30 June 2023. 2. Assume that the building and motor vehicle had remaining useful lives of 25 years and 4 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2023 using the straight-line method for both building and motor vehicle. On 30 June 2023, the statement of financial position of Signature Park Ltd showed the following non-current assets after charging depreciation. Building Accumulated depreciation Motor vehicle Accumulated depreciation $ 700 000 (300 000) $400 000 340 000 (180 000) $160 000 The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $28 000. On 30 June 2023, an independent valuer assessed the fair value of the building to be $420 000 and the vehicle to be $100 000. Hint: Use revaluation method. Required 1. Prepare any necessary entries to revalue the building and the vehicle as at 30 June 2023. 2. Assume that the building and motor vehicle had remaining useful lives of 25 years and 4 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2023 using the straight-line method for both building and motor vehicle.

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Signature Park Ltd Revaluation Entries and Depreciation Expense 1 Revaluation Entries as of June 30 2023 a Building Revaluation Revaluation Decrease D... View the full answer