Explain in full detail XYZ Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair valueXYZ provided you with the following information taken from its books on December 31, 2020:BuildingAnnual depreciation $1,200,000100,000Residual Value120,000Remaining useful lifeon Dec 31, 2018Accum OCI11$25,000Depreciation has been recorded to dateOn December 31, 2020, the building fair value is $960,000The straight-line method of depreciation is used for buildings.Required:(a) Prepare all the journal entries related to the revaluation of the building in 2020.(b) Calculate the depreciation expense to be recorded on December 31, 2021.

SOLUTION- WORKING- FAIR VALUE AS ON 31 DEC 2020 960000 CARRYING VALUE AS ON 31 DEC 2020…

XYZ Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value XYZ provided you with the following information taken from its books on December 31, 2020: Building Annual depreciation $ 2$ 1,200,000 100,000 Residual Value 120,000 Remaining useful life on Dec 31, 2018 11 Accum OCI 25,000 Depreciation has been recorded to date On December 31, 2020, the building fair value is $960,000 The straight-line method of depreciation is used for buildings. Required: (a) Prepare all the journal entries related to the revaluation of the building in 2020. (b) Calculate the depreciation expense to be recorded on December 31, 2021.

XYZ Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value XYZ provided you with the following information taken from its books on December 31, 2020: Building Annual depreciation $ 2$ 1,200,000 100,000 Residual Value 120,000 Remaining useful life on Dec 31, 2018 11 Accum OCI 25,000 Depreciation has been recorded to date On December 31, 2020, the building fair value is $960,000 The straight-line method of depreciation is used for buildings. Required: (a) Prepare all the journal entries related to the revaluation of the building in 2020. (b) Calculate the depreciation expense to be recorded on December 31, 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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