BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipment was $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage value of $50,000. Use the Proportional Method or Elimination Method: You must show the computations to receive the score. Instructions: Answer the following: What is the revaluation surplus, if any? $ Computations: If BBB sells the asset at the end of the sixth year for $380,000 what is the gain/loss on the sale? $ Computations: Assume BBB hold the asset, at the end of the sixth year, its fair value is $425,000. What is the new revaluation surplus, if any? $ Computations:

BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipment was $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage value of $50,000. Use the Proportional Method or Elimination Method: You must show the computations to receive the score. Instructions: Answer the following: What is the revaluation surplus, if any? $ Computations: If BBB sells the asset at the end of the sixth year for $380,000 what is the gain/loss on the sale? $ Computations: Assume BBB hold the asset, at the end of the sixth year, its fair value is $425,000. What is the new revaluation surplus, if any? $ Computations:

Name: BBB Inc revalues an asset with a book value of $715,000 to its fair v
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Description: BBB Inc revalues an asset with a book value of $715,000 to its fair value of $750,000. The original cost of the equipmentwas $1,000,000. BBB uses straight line method depreciation. The equipment has 10-year useful life and salvage valueof $50,000. U

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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