Su Ltd. acquired an excavator on January 1, 2020, for ¥10,000 (all amounts in thousands). This excavator represents the company’s only piece of equipment, and Su chooses revaluation accounting. This excavator is being depreciated on a straight-line basis over its 10-year useful life. There is no residual value at the end of the 10-year period. The appraised value of the excavator approximates the carrying value at December 31, 2020 and 2022. On December 31, 2021, the fair value is determined to be ¥8,800; on December 31, 2023, the fair value is determined to be ¥5,000. Instructions Show all journal entries for each year-end from 2020 through 2023 by applying: a. elimination method b. proportional method
Su Ltd. acquired an excavator on January 1, 2020, for ¥10,000 (all amounts in thousands). This excavator represents the company’s only piece of equipment, and Su chooses revaluation accounting. This excavator is being
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a. elimination method
b. proportional method
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