Problem 29-7. (IAA)On January 1, 2017, Epitome Company acquired the followingproperty, plant and equipment:CostUseful lifeLandBuildingMachineryEquipment5,000,00025,000,00010,000,0003,000,0002510At the beginning of 2020, a revaluation of property, plant andequipment was made by professionally qualified valuers.While no change in the useful life of the assets was indicated.it was ascertained that replacement cost of the assets hadincreased by the following percentage:100%LandBuildingMachineryEquipment80%50%40%It was authorized that such revaluation be recorded in theaccounts and that depreciation be recorded on the basis ofrevalued amount.Required:a. Prepare journal entry to record the revaluation onJanuary 1, 2020.b. Prepare journal entry to record the depreciation for thecurrent year.c. Prepare journal entry to record the piecemeal realizationof the revaluation surplus.d. Present the assets in the statement of financial positionon December 31, 2020.852

Given: To prepare the journal entries of the given record as, As per rule, allowed to answer three…

Answered: ary 1, 2017, Epitome Company plant and…

Business

Accounting

ary 1, 2017, Epitome Company plant and equipment:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 76APSA

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