Lion Company Limited revalued its land and buildings at the start of the year 2020 to $100m ($30 million for the land). The property cost $50 million ($10 million for the land) ten years prior to the revaluation. The total expected useful life of 50 years is unchanged. The company policy is to make an annual transfer of realized amounts to retained earnings, show the effects of the above on the financial statements for the year
Lion Company Limited revalued its land and buildings at the start of the year 2020 to $100m ($30 million for the land). The property cost $50 million ($10 million for the land) ten years prior to the revaluation. The total expected useful life of 50 years is unchanged. The company policy is to make an annual transfer of realized amounts to retained earnings, show the effects of the above on the financial statements for the year
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...
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(M1).
Lion Company Limited revalued its land and buildings at the start of the year 2020 to $100m ($30 million for the land). The property cost $50 million ($10 million for the land) ten years prior to the revaluation. The total expected useful life of 50 years is unchanged. The company policy is to make an annual transfer of realized amounts to
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Step 1: Meaning of Property plant & Equipment and Treatment of Revaluation Surplus. Meaning of Depreciation
VIEWStep 2: Calculation of carrying value at the time of Revaluation
VIEWStep 3: Calculation of revaluation surplus on land and building
VIEWStep 4: Accounting Treatment of Revaluation & Treatment on Financial Statement
VIEWStep 5: Journal entry for excess depreciation charged due to revaluation.
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