On 30 June 2014, the statement of financial position of Meezen Ltd showed the following non-current assets after charging depreciation: $ 300 000 Building Accumulated Depreciation (100 000) $200 000 Motor Vehicle 120 000 Accumulated Depreciation (40 000) 80 000 The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $14000. On 30 June 2014, an independent valuer assessed the fair value of the building to be $160 000 and the vehicle to be $90 000. The income tax rate is 30%. Required 1. Prepare any necessary entries to revalue the building and the vehicle as at 30 June 2014. 2. Assume that the building and vehicle had remaining useful lives of 25 years and 4 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2015 using the straight-line method.
On 30 June 2014, the statement of financial position of Meezen Ltd showed the following non-current assets after charging depreciation: $ 300 000 Building Accumulated Depreciation (100 000) $200 000 Motor Vehicle 120 000 Accumulated Depreciation (40 000) 80 000 The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $14000. On 30 June 2014, an independent valuer assessed the fair value of the building to be $160 000 and the vehicle to be $90 000. The income tax rate is 30%. Required 1. Prepare any necessary entries to revalue the building and the vehicle as at 30 June 2014. 2. Assume that the building and vehicle had remaining useful lives of 25 years and 4 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2015 using the straight-line method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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