1.2. Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition, the useful life was estimated to be 20 years and it was depreciated by using straight-line method. On 1 January 20Y5, Senka Co changed deperecition method to reducing balance with 20%. Several years later, on 31 December 20Y8, the plant was revalued to $800,000 by an independence valuer. Requirement: i.Critically analyze the international accounting standard which can be used in this event relating to accounting for plant of Senka Company. ii. What amount should appear in Senka Company's statement of profit or loss for depreciation expense for the year ended 31 December 20YS ii. What amount should appear in Senka Company's statement of financial position for the Plant and the Revaluation surplus for the year ended 31 December 20YS Note: your answer should show clearly any relevant journal entries.

1.2. Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition, the useful life was estimated to be 20 years and it was depreciated by using straight-line method. On 1 January 20Y5, Senka Co changed deperecition method to reducing balance with 20%. Several years later, on 31 December 20Y8, the plant was revalued to $800,000 by an independence valuer. Requirement: i.Critically analyze the international accounting standard which can be used in this event relating to accounting for plant of Senka Company. ii. What amount should appear in Senka Company's statement of profit or loss for depreciation expense for the year ended 31 December 20YS ii. What amount should appear in Senka Company's statement of financial position for the Plant and the Revaluation surplus for the year ended 31 December 20YS Note: your answer should show clearly any relevant journal entries.

Name: 1.2.Senka Co bought a plant on 1 January 20Y1 for $960,000. At the da
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Description: 1.2.Senka Co bought a plant on 1 January 20Y1 for $960,000. At the date of acquisition, the useful life wasestimated to be 20 years and it was depreciated by using straight-line method. On 1 January 20YS, SenkaCo changed deperecition method to reduc

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
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