On January 1, 2017, Epitome Company acquired the following property, plant and equipment: Cost Useful life Land Building Machinery Equipment 5,000,000 25,000,000 10,000,000 3,000,000 25 10 At the beginning of 2020, a revaluation of property, plant and equipment was made by professionally qualified valuers.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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How much dhould be the revaluation surplus (revaluation loss) on January 1,2020?

 

How much is the Depreciation expense in 2020? 

how much should be credited (Debited) to Retained Earnings as realization of Revaluation surplus for 2020?

620Accig%202020
01%20Conr
Problem 29-7 (IAA)
On January 1, 2017, Epitome Company acquired the following
property, plant and equipment:
Cost
Useful life
5,000,000
25,000,000
10,000,000
3,000,000
Land
25
Building
Machinery
Equipment
10
At the beginning of 2020, a revaluation of property, plant and
equipment was made by professionally qualified valuers.
While no change in the useful life of the assets was indicated,
it was ascertained that replacement cost of the assets had
increased by the following percentage:
Land
Building
Machinery
Equipment
100%
80%
50%
40%
It was authorized that such revaluation be rccorded in the
accounts and that depreciation be recorded on the basis of
revalued amount.
Transcribed Image Text:620Accig%202020 01%20Conr Problem 29-7 (IAA) On January 1, 2017, Epitome Company acquired the following property, plant and equipment: Cost Useful life 5,000,000 25,000,000 10,000,000 3,000,000 Land 25 Building Machinery Equipment 10 At the beginning of 2020, a revaluation of property, plant and equipment was made by professionally qualified valuers. While no change in the useful life of the assets was indicated, it was ascertained that replacement cost of the assets had increased by the following percentage: Land Building Machinery Equipment 100% 80% 50% 40% It was authorized that such revaluation be rccorded in the accounts and that depreciation be recorded on the basis of revalued amount.
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