(c) Pablo vacated an office building and let it out to a third party on 1 July 2020.The building had an original cost of $1,200,000 on 1 January 2015 and wasbeing depreciated over 40 years using the double declining balance methoduntil 31st December 2016. The estimated residual value of the building is$283,000. On 1 January 2017, the company decided to switch to straight-linedepreciation with no change in the estimated residual value of the building. Thebuilding was judged to have a fair value on 1 July 2020 of $809,316. At theyear-end date of 31" December 2020, the fair value of the building wasestimated at $960,000.ii.Pablo uses the fair value model for investment property.RequiredWhat amount will be shown as revaluation surplus (deficit) on 31 December2020 in respect of this building? Round your answer to the nearest $.Answer1.What amount will be credited or debited to profit or loss for the year ended 31stDecember 2020? State whether this amount is a profit or loss.AnswerPage 3 of 9

A revaluation surplus or deficit is the amount which is ascertained due to the reason behind the…

L What amount will be shown as revaluation surplus (deficit) on 31 December 2020 in respect of this building? Round your answer to the nearest $. Answer ii. What amount will be credited or debited to profit or loss for the year ended 31st December 2020? State whether this amount is a profit or loss.

L What amount will be shown as revaluation surplus (deficit) on 31 December 2020 in respect of this building? Round your answer to the nearest $. Answer ii. What amount will be credited or debited to profit or loss for the year ended 31st December 2020? State whether this amount is a profit or loss.

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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Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Balance Sheets for 2020 & 2021.
Please solve accounting problem correctly
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