Entity A acquires equipment on Jan 1, 2021. Information on costs is as follows. Purchase price, gross of trade discount is 1000000 Trade discount available is 10000 Freight costs is 20000 Testing costs is 30000 Net disposal proceeds of samples generated during testing is 5000 Present value of estimated costs of dismantling the equipment at the end of its useful life is 6209 On Dec 31, 2023, Entity A revalues the equipment at a fair value of 820000. There is no change in the residual value and the useful life of the asset. How much is the revaluation surplus
Entity A acquires equipment on Jan 1, 2021. Information on costs is as follows. Purchase price, gross of trade discount is 1000000 Trade discount available is 10000 Freight costs is 20000 Testing costs is 30000 Net disposal proceeds of samples generated during testing is 5000 Present value of estimated costs of dismantling the equipment at the end of its useful life is 6209 On Dec 31, 2023, Entity A revalues the equipment at a fair value of 820000. There is no change in the residual value and the useful life of the asset. How much is the revaluation surplus
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entity A acquires equipment on Jan 1, 2021. Information on costs is as follows.
Purchase price, gross of trade discount is 1000000
Trade discount available is 10000
Freight costs is 20000
Testing costs is 30000
Net disposal proceeds of samples generated during testing is 5000
Present value of estimated costs of dismantling the equipment at the end of its useful life is 6209
On Dec 31, 2023, Entity A revalues the equipment at a fair value of 820000. There is no change in the residual value and the useful life of the asset. How much is the revaluation surplus on Dec 1, 2023?
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