On January 1, 20X1, the company purchased an equipment for $180,000. The equipment has a useful life of 12 years with no residual value. The company uses straight-line depreciation and revalues the equipment every three years.  The company’s reporting date is December 31.  The equipment’s fair value is $117,000 at December 31, 20X3, and $100,000 at December 31, 20X6.     Prepare journal entries to revalue the equipment as at December 31, 20X3 and December 31, 20X6 (using the asset adjustment method).

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. On January 1, 20X1, the company purchased an equipment for $180,000. The equipment has a useful life of 12 years with no residual value. The company uses straight-line depreciation and revalues the equipment every three years.  The company’s reporting date is December 31.  The equipment’s fair value is $117,000 at December 31, 20X3, and $100,000 at December 31, 20X6.

 

 

Prepare journal entries to revalue the equipment as at December 31, 20X3 and December 31, 20X6 (using the asset adjustment method).

 

 

 

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