Emed Address: presidenta.batstate-ss.cdu.ch Website Address!Problem 20-9 (PHILCPA Adapted)On January 1, 2020, Contentious Company provided thefollowing information related to the land and building50,000,000450,000,00075,000,000LandBuildingAccumulated depreciation-buildingThere were no additions or disposals during the current year.Depreciation is computed using straight line over 15 yearsfor building.On June 30, 2020 the land and building were revalued.Sound valueeplacement cost65,000,000600,000,00065,000,000480,000,000LandBuilding1 What is the revaluation surplus on June 30, 2020?a 135,000,000b. 125.000.00o0C. 120,000,000d. 160,000,0002. What is the-depreciation of the building for 2020?a. 30,000,000b. 35,000.000c. 40,000.000d. 32.000.0003. What is the revaluation surplus on December 31,20202a 125.000,000b. 130,000,000c. 123,750,000d. 115,000,000

Name: Emed Address: presidenta.batstate-ss.cdu.ch Website Address!Problem 2
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Description: Emed Address: presidenta.batstate-ss.cdu.ch Website Address!Problem 20-9 (PHILCPA Adapted)On January 1, 2020, Contentious Company provided thefollowing information related to the land and building50,000,000450,000,00075,000,000LandBuildingAccumulate

Revaluation surplus of Assets The treatment of revaluation surplus of assets which are taken care in…

Business

Accounting

1. What is the revaluation surplus on June 30, 2020? a 135,000,000 b. 125,000,000 c. 120,000,0o0 d. 160,000,000 2 What is the -depreciation of the building for 2020? a. 30,000,000 b. 35,000,000 40.000 0n

1. What is the revaluation surplus on June 30, 2020? a 135,000,000 b. 125,000,000 c. 120,000,0o0 d. 160,000,000 2 What is the -depreciation of the building for 2020? a. 30,000,000 b. 35,000,000 40.000 0n

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Emed Address: presidenta.batstate-ss.cdu.ch Website Address!
Problem 20-9 (PHILCPA Adapted)
On January 1, 2020, Contentious Company provided the
following information related to the land and building
50,000,000
450,000,000
75,000,000
Land
Building
Accumulated depreciation-building
There were no additions or disposals during the current year.
Depreciation is computed using straight line over 15 years
for building.
On June 30, 2020 the land and building were revalued.
Sound value
eplacement cost
65,000,000
600,000,000
65,000,000
480,000,000
Land
Building
1 What is the revaluation surplus on June 30, 2020?
a 135,000,000
b. 125.000.00o0
C. 120,000,000
d. 160,000,000
2. What is the-depreciation of the building for 2020?
a. 30,000,000
b. 35,000.000
c. 40,000.000
d. 32.000.000
3. What is the revaluation surplus on December 31,20202
a 125.000,000
b. 130,000,000
c. 123,750,000
d. 115,000,000

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