Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building was estimated at $1.2 million. Carter uses the fair value model for investment property. What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?
Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building was estimated at $1.2 million. Carter uses the fair value model for investment property. What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 3CPA: Chad owned an office building that was destroyed in a tornado. The area was declared a Federal...
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Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original
cost of $900,000 on 1 January 20X0 and was being
value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building
was estimated at $1.2 million.
Carter uses the fair value model for investment property.
What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?
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