On January 1, 20X1, the company purchased equipment for $180,000. The equipment has a useful life of
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On January 1, 20X1, the company purchased equipment for $180,000. The equipment has a useful life of 12 years with no residual value. The company uses straight-line depreciation and revalues the equipment every three years. The company’s reporting date is December 31. The equipment’s fair value is $117,000 at December 31, 20X3, and $100,000 at December 31, 20X6.
Prepare journal entries to revalue the equipment as of December 31, 20X3, and December 31, 20X6 (using the asset adjustment method).
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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