11-24. IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June 30, 20X0, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years from the date of purchase. The company uses straight-line depreciation for its hotels. The appraisal value for the hotel (which you can assume is the same as the recoverable amount) was reported as: Appraisal Date Hotel Value 12/31/20X0 €2,200,000 12/31/20X1 €1,400,000 2/31/20X2 €1,700,000 Required: Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS cost model to value this property. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS revaluation model to value this property.

IceCap Hotels operates a series of northern European hotels and reports under IFRS. On June sheet under Property, plant, and equipment. The estimated useful life of the hotel is 30 years 30, 2000, IceCap purchased a hotel for €2,100,000. IceCap reports hotel values on the balance appraisal value for the hotel (which you can assume is the same as the recoverable amount) from the date of purchase. The company uses straight-line depreciation for its hotels. The was reported as: Appraisal Date 12/31/20X0 12/31/20X1 12/31/20X2 Hotel Value €2,200,000 €1,400,000 €1,700,000 P11-24 IFRS impairment and reval- uation (LO 11-10) Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this hotel asset if IceCap chooses the IFRS revaluation model to value this property.…

11-24. White Ski Resorts operates a series of ski resorts in northern Europe and reports under IFRS. On June 30, 20X0, White purchased land for €3,000,000. White reports land values on the balance sheet under Property, plant, and equipment. The appraisal value for the land (which you can assume is the same as the recoverable amount) was reported as: Appraisal Date Land Value 12/31/20X0 €3,150,000 12/31/20X1 €2,750,000 12/31/20X2 €2,850,000 Required: 1. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS cost model to value this property. 2. Prepare the journal entries at the end of 20X0, 20X1, and 20X2 to record any changes in value to this land asset if White chooses the IFRS revaluation model to value this property.

Colquhoun International purchases a warehouse for $301,000. The best estimate of the salvage value at the time of purchase was $16,000, and it is expected to be us for twenty-five years. Colquhoun uses the straight-line depreciation method for all warehouse buildings. After four years of recording depreciation, Colquhoun determir that the warehouse will be useful for only another fifteen years. A. Calculate annual depreciation expense for the first four years. $ 171,000 B. Determine the depreciation expense for the final fifteen years of the asset's life. 11,400 X Feedback V Check My Work When revising deprecation schedules, the book value is used as the adjusting base to apply the new changes to when determine the revised yearly depreciation amount. C. Prepare the journal entry for year five. If an amount box does not require an entry, leave it blank. Depreciation Expense 171,000 X Accumulated Depreciation-Warehouse 171,000