Sunland Ltd. purchased a building on January 1, 2018 for $14,520,000. Sunland accounted for this asset using
Question:
Sunland Ltd. purchased a building on January 1, 2018 for $14,520,000. Sunland accounted for this asset using the revaluation model and revalued the building every two years. The building was estimated to have a useful life of 30 years with no residual value, and Sunland used straight-line depreciation. On December 31, 2019, the building had a fair value of $13,720,000. On December 31, 2021, the building had a fair value of $12,478,600.
Prepare the journal entries on the books of Sunland Ltd. to revalue the building on December 31, 2019 and December 31, 2021 using the asset adjustment method
Date Account Titles and Explanation
December 31 2019
(To adjust depreciation on building.)
(To adjust building.)
Date Account Titles and Explanation
December 31 2020
(To adjust depreciation on building.)
(To adjust building.)
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1111534912
8th edition
Authors: Gary A. Porter, Curtis L. Norton