Question: A company owns a building it had purchased onJanvary 1, 2020, for $4 million in cash. It is accounted for in a seperate account calledbuildings.

A company owns a building it had purchased onJanvary 1, 2020, for $4 million in cash. It is accounted for in a seperate account called"buildings." The company uses the revaluation model and revalues anually. The companyuses straight-line depreciation over the asset's10-year useful life with no residual value. The asset's fair value was equal to its carrying amount on December 31, 2020 and was4000000 on December 31, 2021. The company uses the asset adjustment method for the revaluation.
Make all journl entries for 2020 and 2021:

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Asset revaluation is the adjustment of the carrying value of the fixed assets to their fair market value prevailing at the end of the period The asset... View full answer

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