Question: Building #3: It is constructed on Land #2. It was completed and 100% rented out in 2016. Its construction cost in 2016 was $1,300,000. Its useful life is 25 years and has residual value of NIL. Its fair values are as follows: Dec 31, 2017: $1,500,000 Dec 31, 2018: 1,600,000 Dec 31, 2019: 1,300,000 Required: Prepare all necessary journal entries, correcting entries (if any) and adjusting journal entries for the fiscal year ending December 31, 2019 Show all calculations and round all numbers to the nearest cent.

Question: Building #3: It is constructed on Land #2. It was completed and 100% rented out in 2016. Its construction cost in 2016 was $1,300,000. Its useful life is 25 years and has residual value of NIL. Its fair values are as follows: Dec 31, 2017: $1,500,000 Dec 31, 2018: 1,600,000 Dec 31, 2019: 1,300,000 Required: Prepare all necessary journal entries, correcting entries (if any) and adjusting journal entries for the fiscal year ending December 31, 2019 Show all calculations and round all numbers to the nearest cent.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...

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