XYZ Co. acquired an equipment on January 1, 2021, at a cost of $870,000. This equipment has
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XYZ Co. acquired an equipment on January 1, 2021, at a cost of $870,000. This equipment has no residual value and is being depreciated on a straight-line basis over a 30-year useful life. On January 1, 2026 (5 years after acquisition), the fair value is determined to be $701,000. XYZ Co. follows the IFRS rule of revaluation. The remaining useful life and residual value estimates are not changed. | ||||||||||
Questions | ||||||||||
1) The amount of annual depreciation from year 2021 to 2026 is . | ||||||||||
2) The NET carrying amount for equipment on January 1, 2026 prior to revaluation is . | ||||||||||
3) The amount of revaluation loss the company should recognize on January 1, 2026 is . | ||||||||||
4) Assume accumulated depreciation is restated proportionally, the amount of accumulated depreciation after revaluation is . |
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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