On 28 April 20X2, Peele Realty purchased land and building for $4.85 million and $2.99 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $4.87 million, $4.64 million and $5.00 million. The fair value of the building at the end of 20X3 was $3.35 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele takes a full year of depreciation in the year acquired. Required: 1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the $4.85 million land purchased on 28 April 20X2 if the fair value of the land at the end of 20X2 was $4.87 million. The company uses the revaluation model. Assume that the land is revalued annually. 2 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X3 was $4.64 million. 3 X alue of Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X4 was $5 million. Credit >
On 28 April 20X2, Peele Realty purchased land and building for $4.85 million and $2.99 million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years. The fair value of the land at the end of 20X2, 20X3 and 20X4 was $4.87 million, $4.64 million and $5.00 million. The fair value of the building at the end of 20X3 was $3.35 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele takes a full year of depreciation in the year acquired. Required: 1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Record the $4.85 million land purchased on 28 April 20X2 if the fair value of the land at the end of 20X2 was $4.87 million. The company uses the revaluation model. Assume that the land is revalued annually. 2 Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X3 was $4.64 million. 3 X alue of Record the gain or loss on revaluation of land if the fair value of the land at the end of 20X4 was $5 million. Credit >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On 28 April 20X2, Peele Realty purchased land and building for $4.85 million and $2.99 million, respectively. The company uses the
revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years.
The fair value of the land at the end of 20X2, 20X3 and 20X4 was $4.87 million, $4.64 million and $5.00 million. The fair value of the
building at the end of 20X3 was $3.35 million. The building is amortized on a straight-line basis and has a 25-year useful life. Peele
takes a full year of depreciation in the year acquired.
Required:
1. Prepare the journal entries under the revaluation model for the land in 20X2, 20X3 and 20X4. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
1
2
3
Record the $4.85 million land purchased on 28 April 20X2
if the fair value of the land at the end of 20X2 was $4.87
million. The company uses the revaluation model.
Assume that the land is revalued annually.
Record the gain or loss on revaluation of land if the fair
value of the land at the end of 20X3 was $4.64 million.
Record the gain or loss on revaluation of land if the fair
value of the land at the end of 20X4 was $5 million.
Note:
E journal entry has been entered
Record entry
Clear entry
X
alue of
Credit
View general journal
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