Building A is acquired on 1st January 2012 for RM800,000.00. It was depreciated using straight line method for 20 years. The first two years the company uses the cost model but adopt revaluation model afterwards. Revaluations were conducted every three years. Fair values at the date of revaluation were RM693,000.00 in 2014; RM607,500.00 in 2017 and RM490,000.00 in 2020. Give one example when inventory on hand at the reporting date not measured at cost. Prepare journal entries to record revaluations. Show detailed calculations to support your answer
Building A is acquired on 1st January 2012 for RM800,000.00. It was depreciated using straight line method for 20 years. The first two years the company uses the cost model but adopt revaluation model afterwards. Revaluations were conducted every three years. Fair values at the date of revaluation were RM693,000.00 in 2014; RM607,500.00 in 2017 and RM490,000.00 in 2020. Give one example when inventory on hand at the reporting date not measured at cost. Prepare journal entries to record revaluations. Show detailed calculations to support your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Building A is acquired on 1st January 2012 for RM800,000.00. It was depreciated using straight
line method for 20 years. The first two years the company uses the cost model but adopt
revaluation model afterwards. Revaluations were conducted every three years. Fair values at
the date of revaluation were RM693,000.00 in 2014; RM607,500.00 in 2017 and
RM490,000.00 in 2020.
Give one example when inventory on hand at the reporting date not measured at cost.
Prepare journal entries to record revaluations. Show detailed calculations to support your
answer.
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