During 2020 the directors of Chana Ltd decided to value its industrial plant to market value. The plant was acquired on 1 June 2015 at a cost of R45 000 000 and had an estimated useful life of 15 years on the date of acquisition. The plant was valued at R41 500 000 on 1 June 2019. Plant is carried using the revaluation method and depreciation is on the straight‐ line basis. Prepare the journal entries only that would be processed on 1 June 2019 in respect of the revaluation of the plant if the entity uses the elimination method to revalue items.
During 2020 the directors of Chana Ltd decided to value its industrial plant to market value. The plant was acquired on 1 June 2015 at a cost of R45 000 000 and had an estimated useful life of 15 years on the date of acquisition. The plant was valued at R41 500 000 on 1 June 2019. Plant is carried using the revaluation method and depreciation is on the straight‐ line basis. Prepare the journal entries only that would be processed on 1 June 2019 in respect of the revaluation of the plant if the entity uses the elimination method to revalue items.
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 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...
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During 2020 the directors of Chana Ltd decided to value its industrial plant to market value.
The plant was acquired on 1 June 2015 at a cost of R45 000 000 and had an estimated
useful life of 15 years on the date of acquisition. The plant was valued at R41 500 000 on
1 June 2019. Plant is carried using the revaluation method and
straight‐ line basis.
Prepare the
2019 in respect of the revaluation of the plant if the entity uses the elimination
method to revalue items.
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