XYZ Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value took place on December 31, 2018 XYZ provided you with the following information taken from its books on December 31, 2020: Building $ 1,200,000 Annual depreciation $ 100,000 Residual Value $ 120,000 Remaining useful life 11 on Dec 31, 2018 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 took place on December 31, 2018 XYZ provided you with the following information taken from its books on December 31, 2020: Building $ 1,200,000 Annual depreciation $ 100,000 Residual Value $ 120,000 Remaining useful life 11 on Dec 31, 2018 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.
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 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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| XYZ Co. uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value took place on December 31, 2018 | |||||||||||
| XYZ provided you with the following information taken from its books on December 31, 2020: | |||||||||||
| Building | $ 1,200,000 | ||||||||||
| Annual depreciation | $ 100,000 | ||||||||||
| Residual Value | $ 120,000 | ||||||||||
| Remaining useful life | 11 | ||||||||||
| on Dec 31, 2018 | |||||||||||
| 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 |
|||||||||||
| (b) Calculate the depreciation expense to be recorded on December 31, 2021. |
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