Capitol Lands Ltd acquired a retail complex on 1 January 2013 at a cost of $90,000,000. The building was depreciated using the straight-line basis over the remaining lease period of 40 years starting on 1 January 2013. There is no residual value estimated. On 1 January 2019, the building was revalued to $78,000,000 by an independent valuer. The remaining lease period was not affected by the revaluation. Required: (a) Calculate the accumulated depreciation balance as at 1 January 2019. (b) Prepare journal entries to record the revaluation on 1 January 2019. (c) Prepare all necessary journal entries to account for the depreciation of the revalued building for the year ended 31 December 2019. Narration is not required for journal entries. Show all your workings clearly and round off answers to the nearest dollar, where applicable.
Capitol Lands Ltd acquired a retail complex on 1 January 2013 at a cost of $90,000,000. The
building was
years starting on 1 January 2013. There is no residual value estimated.
On 1 January 2019, the building was revalued to $78,000,000 by an independent valuer. The
remaining lease period was not affected by the revaluation.
Required:
(a) Calculate the
(b) Prepare
(c) Prepare all necessary journal entries to account for the depreciation of the revalued
building for the year ended 31 December 2019.
Narration is not required for journal entries. Show all your workings clearly and round off
answers to the nearest dollar, where applicable.
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