7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected useful life is 24 years. The company policy is to revalue its properties to their market values at the end of each year. Accumulated depreciation is eliminated and the property is restated to the revalued amount. Annual depreciation iş calculated on the carrying amount at the beginning of the year. The market values of the property on 31 December x3 and x5 were RM1,100,000 and RM750,000, respectively. The existing balance on the revaluation reserve is RM200,000 which is related to some non-depreciable land whose value has not changed significantly since 1 January x2. Required: Prepare extracts of the financial statements of Ray (including revaluation reserve) for the years x2 to x6.
7. Ray acquired a property on 1 January x2 at a cost of RM960,000. Expected useful life is 24 years. The company policy is to revalue its properties to their market values at the end of each year. Accumulated depreciation is eliminated and the property is restated to the revalued amount. Annual depreciation iş calculated on the carrying amount at the beginning of the year. The market values of the property on 31 December x3 and x5 were RM1,100,000 and RM750,000, respectively. The existing balance on the revaluation reserve is RM200,000 which is related to some non-depreciable land whose value has not changed significantly since 1 January x2. Required: Prepare extracts of the financial statements of Ray (including revaluation reserve) for the years x2 to x6.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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