On January $1,2023,$ Wildhorse Ltd$.$ acquires a building at a cost of $$290,000.$ The building is expected to have a $20-$year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December $31,2025,$ the fair value of the building is appraised at $$260,000,$ and on December $31,2028,$ its fair value is $$140,000.$ Wildhorse applies IFRS.

Prepare a continuity schedule showing the amounts recorded to the Buildings account and to the Accumulated Depreciation account, as well as indicating the carrying amount for each fiscal year from date of purchase to December $31,2028,$ using $(1)$ the asset adjustment method and $(2)$ the proportionate method. Show the carrying amount under each method at the end of each fiscal year.

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Answer To prepare the continuity schedule showing the carrying amounts of the building under the ass... View the full answer