On February 1, 2020, Jordan Corp. purchased a vineyard in southern Ontario for $7.8 million cash....

Transcribed Image Text:

On February 1, 2020, Jordan Corp. purchased a vineyard in southern Ontario for $7.8 million cash. Based on appraisals, there was no change in value for the property in 2020 and the property's year-end fair values were $7.4 million at the end of 2021, and $ 7 million at the end of 2022. The useful life of the vineyard is expected to be 30 years with a residual value of $280,000. Jordan Corp uses straight-line depreciation. Required: Jordan Corp uses the revaluation model, prepare all the required journal entries in 2020, 2021 and 2022. On February 1, 2020, Jordan Corp. purchased a vineyard in southern Ontario for $7.8 million cash. Based on appraisals, there was no change in value for the property in 2020 and the property's year-end fair values were $7.4 million at the end of 2021, and $ 7 million at the end of 2022. The useful life of the vineyard is expected to be 30 years with a residual value of $280,000. Jordan Corp uses straight-line depreciation. Required: Jordan Corp uses the revaluation model, prepare all the required journal entries in 2020, 2021 and 2022.

Answer rating: 100% (QA)

Since Jordan Corp uses the revaluation model for accounting we will need to adjust the value of the vineyard each year to reflect its fair value at th... View the full answer