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Leigh Co. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash. The company is using the revaluation model to account for its motel and revalues it annually. Lee Co. uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its book value on Dec. 31, 2020, the fair value was $ 1,450,000 on Dec. 31, 2021 and $1,150,000 on December 31, 2022. Required: Prepare all the required journal entries from January 1, 2020 to December 31, 2022.

Leigh Co. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash. The company is using the revaluation model to account for its motel and revalues it annually. Lee Co. uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its book value on Dec. 31, 2020, the fair value was $ 1,450,000 on Dec. 31, 2021 and $1,150,000 on December 31, 2022. Required: Prepare all the required journal entries from January 1, 2020 to December 31, 2022.

FINANCIAL ACCOUNTING
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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Leigh Co. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash. The company is using the revaluation model to account for its motel and revalues it annually. Lee Co. uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its book value on Dec. 31, 2020, the fair value was $ 1,450,000 on Dec. 31, 2021 and $1,150,000 on December 31, 2022. Required: Prepare all the required journal entries from January 1, 2020 to December 31, 2022.
Transcribed Image Text:Leigh Co. owns a motel that it had purchased on January 1, 2020, for $ 1.5 million cash. The company is using the revaluation model to account for its motel and revalues it annually. Lee Co. uses straight-line depreciation over the asset's 15-year useful life with no residual value. The asset's fair value was equal to its book value on Dec. 31, 2020, the fair value was $ 1,450,000 on Dec. 31, 2021 and $1,150,000 on December 31, 2022. Required: Prepare all the required journal entries from January 1, 2020 to December 31, 2022.
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