Exercise 11-9 (Static) IFRS; revaluation of equipment; depreciation; partial periods [LO11-10] [The following information applies to the questions displayed below.] Exercise 11-9 (Static) Part 1 Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower chooses to revalue the equipment to its fair value of $220,000. Required: 1. Calculate depreciation for 2024. 2-a. Calculate the revaluation of the equipment. 2-b. Prepare the journal entry to record the revaluation of the equipment. 3. Calculate depreciation for 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. No 1 Req 1 Req 2A Prepare the journal entry to record the revaluation of the equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. General Journal Req 2B Event 1 Req 3 Equipment Accumulated depreciation Revaluation surplus-OCI < Req 2A Req 3 > Debit 30,000 Credit
Exercise 11-9 (Static) IFRS; revaluation of equipment; depreciation; partial periods [LO11-10] [The following information applies to the questions displayed below.] Exercise 11-9 (Static) Part 1 Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower chooses to revalue the equipment to its fair value of $220,000. Required: 1. Calculate depreciation for 2024. 2-a. Calculate the revaluation of the equipment. 2-b. Prepare the journal entry to record the revaluation of the equipment. 3. Calculate depreciation for 2025. Answer is not complete. Complete this question by entering your answers in the tabs below. No 1 Req 1 Req 2A Prepare the journal entry to record the revaluation of the equipment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. General Journal Req 2B Event 1 Req 3 Equipment Accumulated depreciation Revaluation surplus-OCI < Req 2A Req 3 > Debit 30,000 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Exercise 11-9 (Static) IFRS; revaluation of equipment; depreciation; partial periods [LO11-10]
[The following information applies to the questions displayed below.]
Exercise 11-9 (Static) Part 1
Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased
equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the
straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower
chooses to revalue the equipment to its fair value of $220,000.
Required:
1. Calculate depreciation for 2024.
2-a. Calculate the revaluation of the equipment.
2-b. Prepare the journal entry to record the revaluation of the equipment.
3. Calculate depreciation for 2025.
Complete this question by entering your answers in the tabs below.
No
1
Req 1
Reg 2A
Req 2B
Prepare the journal entry to record the revaluation of the equipment.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest whole dollar amount.
General Journal
Event
1
Answer is not complete.
Req 3
Equipment
Accumulated depreciation
Revaluation surplus-OCI
< Req 2A
Req 3 >
Debit
30,000 X
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c627ce9-92b1-4cfe-9485-fe719c2a9704%2Fc2c80161-8583-434f-be62-9e322b450fcf%2F1g2q7wo_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-9 (Static) IFRS; revaluation of equipment; depreciation; partial periods [LO11-10]
[The following information applies to the questions displayed below.]
Exercise 11-9 (Static) Part 1
Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased
equipment for $240,000. The equipment is expected to have a six-year useful life with no residual value. Dower uses the
straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower
chooses to revalue the equipment to its fair value of $220,000.
Required:
1. Calculate depreciation for 2024.
2-a. Calculate the revaluation of the equipment.
2-b. Prepare the journal entry to record the revaluation of the equipment.
3. Calculate depreciation for 2025.
Complete this question by entering your answers in the tabs below.
No
1
Req 1
Reg 2A
Req 2B
Prepare the journal entry to record the revaluation of the equipment.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest whole dollar amount.
General Journal
Event
1
Answer is not complete.
Req 3
Equipment
Accumulated depreciation
Revaluation surplus-OCI
< Req 2A
Req 3 >
Debit
30,000 X
Credit
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Step 1: Define Revaluation of depreciation
VIEWStep 2: 1) The calculation of the depreciation for the year 2024 is as follows-
VIEWStep 3: 2a) Revaluation of equipment is as follows-
VIEWStep 4: 2b) The journal entry is as follows-
VIEWStep 5: 3) The calculation of the deprecation for the year 2025 is as follows-
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