17.On December 31, 20x1, the building of Borong Co. with a historical cost of #320,000,000, accumulated depreciation of $160,000,000, and an estimated useful life of 20 years was determined to have a fair value of $200,000,000. Borong Co. is subject to an income tax rate of 30%. Under the elimination method, the entry to record the revaluation includes a. a debit to accumulated depreciation for $160,000,000. b. a debit to accumulated depreciation for $40,000,000. c. a debit to building for $120,000,000. d. a credit to building for $160,000,000.
17.On December 31, 20x1, the building of Borong Co. with a historical cost of #320,000,000, accumulated depreciation of $160,000,000, and an estimated useful life of 20 years was determined to have a fair value of $200,000,000. Borong Co. is subject to an income tax rate of 30%. Under the elimination method, the entry to record the revaluation includes a. a debit to accumulated depreciation for $160,000,000. b. a debit to accumulated depreciation for $40,000,000. c. a debit to building for $120,000,000. d. a credit to building for $160,000,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...
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