The Salient company uses the revaluation model for its building. It acquired a building on January 1, 2018 for $450,000 cash. The useful life is 25 years and the residual value is $50,000. On December 31, 2019 and December 31, 2021, the fair value of the building was assessed at $422,000 and $380,000, respectively.   Required- Prepare all the journal entries from January 1, 2018 to December 31, 2021. Determine the balance of the Accumulated Other Comprehensive Income (AOCI) account on December 31, 2019 and December 31, 2021, and specify whether it is a debit or a credit balance.

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A: Given information:

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Q: k purcha

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Q: What is the amount of revaluation surplus reported in equity on December 31, 2022?

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.