Choose 1, 2,3 or 4 from the drop down menu-if the company is using: (1) the cost model for accounting for property, plant and equipment, (2) the revaluation model for accounting for property, plant and equipment, (3) applicable under both models, or (4) cannot be determined from the information given. Heyel Inc. purchased a building and land to be used as a storage facility. They purchased the land and building for $869,000. $500,000 was recorded to the account Land and $369,000 was recorded to the a. 1. account Buildings. b. Granton Foods Incorporated's Statement of Financial Position shows Equipment with a balance of $450,000 and Accumulated Depreciation - Equipment with a balance of $139,000. The TGY Company Ltd. is a real estate developer. The fair market value of each property held by the company is compared on an annual basis to the property's carrying amount. An adjustment is made ither downwards or upwards to change the asset's carrying amount on the Statement of Financial Position to C. make it equal to the fair value of the asset if it is significantly different than the recorded carrying amount. d. Great Divide Inc. is a Canadian company and follows ASPE. Hagger Ltd. follows IFRS guidelines for reporting property, plant, and equipment. e.
Choose 1, 2,3 or 4 from the drop down menu-if the company is using: (1) the cost model for accounting for property, plant and equipment, (2) the revaluation model for accounting for property, plant and equipment, (3) applicable under both models, or (4) cannot be determined from the information given. Heyel Inc. purchased a building and land to be used as a storage facility. They purchased the land and building for $869,000. $500,000 was recorded to the account Land and $369,000 was recorded to the a. 1. account Buildings. b. Granton Foods Incorporated's Statement of Financial Position shows Equipment with a balance of $450,000 and Accumulated Depreciation - Equipment with a balance of $139,000. The TGY Company Ltd. is a real estate developer. The fair market value of each property held by the company is compared on an annual basis to the property's carrying amount. An adjustment is made ither downwards or upwards to change the asset's carrying amount on the Statement of Financial Position to C. make it equal to the fair value of the asset if it is significantly different than the recorded carrying amount. d. Great Divide Inc. is a Canadian company and follows ASPE. Hagger Ltd. follows IFRS guidelines for reporting property, plant, and equipment. e.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Choose 1, 2, 3 or 4 from the drop down menu if the company is using: (1) the cost model for accounting for property, plant and
equipment, (2) the revaluation model for accounting for property, plant and equipment, (3) applicable under both models, or (4)
cannot be determined from the information given.
Heyel Inc. purchased a building and land to be used as a storage facility. They purchased the land and
building for $869,000. $500,000 was recorded to the account Land and $369,000 was recorded to the
a.
1.
account Buildings.
2.
b.
Granton Foods Incorporated's Statement of Financial Position shows Equipment with a balance of
3.
$450,000 and Accumulated Depreciation - Equipment with a balance of $139,000.
4.
The TGY Company Ltd. is a real estate developer. The fair market value of each property held by the
company is compared on an annual basis to the property's carrying amount. An adjustment is made pither
downwards or upwards to change the asset's carrying amount on the Statement of Financial Position to
C.
make it equal to the fair value of the asset if it is significantly different than the recorded carrying amount.
d.
Great Divide Inc. is a Canadian company and follows ASPE.
e.
Hagger Ltd. follows IFRS guidelines for reporting property, plant, and equipment.
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