B3). 1. Martin owns land that isclassified as PPE. The land haspreviously been valued at cost.The land will be revaluedusing the revaluation model toits fair value on December 31(the company's year-end).Before revaluation, the land'scarrying value was $100,000.The fair value is $125,000 as ofDecember 31, 2021. Whatjournal entry is required torecord the revaluation? Whatentry would've been made ifthe fair value on December 31,2022, is $90,000?

The Preparation Journal Entry is as follows Date Particular…

Answered: Journal entry is required to record the…

Journal entry is required to record the revaluation? What entry would've been made if the fair value on December 31, 2022, is $90,000?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

B3).

1. Martin owns land that is
classified as PPE. The land has
previously been valued at cost.
The land will be revalued
using the revaluation model to
its fair value on December 31
(the company's year-end).
Before revaluation, the land's
carrying value was $100,000.
The fair value is $125,000 as of
December 31, 2021. What
journal entry is required to
record the revaluation? What
entry would've been made if
the fair value on December 31,
2022, is $90,000?

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