Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building was estimated at $1.2 million. Carter uses the fair value model for investment property. What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original

cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair

value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building

was estimated at $1.2 million.

Carter uses the fair value model for investment property.

What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?

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