Question: Use the information for Valued Assets Inc. from BE10-18. On January 5, 2018, Valued sold the building for $325,000 cash. Prepare the journal entries to

Use the information for Valued Assets Inc. from BE10-18. On January 5, 2018, Valued sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used
(a) The cost model,
(b) The revaluation model using the asset adjustment method, and
(c) The revaluation model using the proportionate method.
In BE10-18
Valued Assets Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2017, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000.

Step by Step Solution

★★★★★

3.58 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Cost Model Jan 5 Cash 325000 Accumulated Depreciation Buildings 110000 Building... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1188-B-C-A-P-C(1336).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Use the information for Hanson Company from BE10-2 and BE10-3. Compute avoidable interest for Hanson Company.

Use the information for Navajo Corporation from BE10-8. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance.

Use the information for Cheetah Company given in BE10-6. (a) Compute 2008 depreciation expense using the double-declining balance method. (b) Compute 2008 depreciation expense using the...

Use the information for Valued Assets Inc. from BE10.18. On January 5, 2021, Valued sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having...

Accounting 255 Comprehensive Problem 2 Page 124 COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5, 6, 8) COMPREHENSIVE PROBLEM 2 REQUIREMENTS (1) Prepare journal entries to record the merchandising transactions...

equipment's (a) Ret tion calculation to the nearest dollar.) h) What factors may have been responsible for the impairment? Assume instead that the company sold the land and building on October 31,...

10. Susion Thermo ka Question 4 Not complete Marked out of 12.00 Remove flag Advance Payments for Goods The Petaluma Daily Times Corporation (CDT) publishes a daily newspaper. A 52-week subscription...

in the picture Question 14 Part 1 As at 1 April 2015, the balance sheet of Super Estate Limited shows a piece of land at a value of $7,800,000. In previous years the company had recorded revaluation...

You are tasked with the preparation of a set of 2015 financial statements for BRONX BOMBERS, INC. acompany that purchases merchandise inventory for resale.You will be required to prepare journal...

ACC 255 Comprehensive Problem 2 (Chapters 2, 5, 6, 8) Page 124 COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5, 6, 8) COMPREHENSIVE PROBLEM 2 REQUIREMENTS (1) Prepare journal entries to record the...

Ted and Alice Hansel have a son who will begin college 10 years from today. School expenses of $30,000 will need to be paid at the beginning of each of the four years that their son plans to attend...

Your client, Vanessa, applies for life insurance and the application goes to underwriting. Vanessa is a 49 year woman with average height. weight, and health and she is a non-smoker. Which risk class...

For each of these sequences, write i the term-to-term rule ii the next two terms. a 2, 2 1/3, 2 2/3, 3, b 6.7, 6.4, 6.1, 5.8,

1.12. You are considering buying a second-hand Volkswagen. From reading car magazines, you know that half of all Volkswagens have problems of some kind (they are "lemons") and the other half run just...

At December 31, 2017, Watzman Inc. owned equipment that had a book value of $178,000 and a tax base of $136,000 due to the use of different depreciation methods for accounting and tax purposes. The...

Complete the following statements by filling in the blanks or choosing the correct answer in parentheses. (a) In a period in which a taxable temporary difference reverses, the reversal will cause...

Christina Inc. follows IFRS and accounts for financial instruments based on IFRS 9. Christina holds a variety of investments, some of which are accounted for at fair value through net income and some...

You are considering investing in an 7% coupon rate bond with a three-year maturity and a face value of $1000. You observe the following prices for discount, or zero-coupon, bonds with face values of...

homeowners can obtain $ 1 0 , 0 0 0 coverage for sewage and drain backup damage. Multiple Choice $ 1 0 0 a year $ 1 , 0 0 0 a year $ 1 0 0 a month $ 2 0 0 to $ 3 0 0 per year $ 3 0 0 to $ 4 0 0 per...

failed assumptions This information will be used for the next two questions: You are curious why some apartments in West Campus cost more to rent than others. So you sample 30 one-bedroom apartments...