On 31 December 2023, the statement of financial position of Dominic Ltd showed the following non-current assets after charging depreciation. Leasehold land $ 800 000 Accumulated depreciation (400 000) $ 400 000 Equipment $ 340 000 Accumulated depreciation (180 000) $ 160 000 The company has adopted fair value for the valuation of non-current assets, as per the revaluation method. On 31 December 2023, an independent valuer assessed the fair value of the leasehold land to be $420 000 and the equipment to be $100 000. The Asset Revaluation Surplus Account balance on 31 December 2023 is $15,000 before the revaluation takes place. Required 1. Prepare any necessary entries to revalue the leasehold land and the equipment as at 31 December 2023. Hint: Show separate entries for revaluation gain or loss, you may only offset current year’s loss with asset revaluation surplus balance amount before the revaluation took place. 2. Assume that the leasehold land and equipment had remaining useful lives of 20 years and 5 years respectively, with zero residual value. Prepare entries to record depreciation expense for the year ended 31 December 2023 using the straight-line method for both leasehold land and equipment. Please solve it steps by steps and kindly show me the working please.
On 31 December 2023, the statement of financial position of Dominic Ltd showed the following non-current assets after charging
Step by step
Solved in 4 steps with 4 images
