P Ltd has two non-current assets: land and machinery at 30 June 2020. The carrying amount of land is $800,000 and machinery is $80,000 (cost $100,000 less accumulated depreciation $20,000). On 30 June 2020, P Ltd revalued both assets and the fair value land was $750,000 while fair value of machinery was $110,000. On 30 June 2021, fair value of land was $775,000 but the value of the machinery was unchanged. The tax rate is 30 percent. Required Provide the appropriate journal entries to record the revaluations of assets on 30 June 2020 to 30 June 2021.
P Ltd has two non-current assets: land and machinery at 30 June 2020. The carrying amount of land is $800,000 and machinery is $80,000 (cost $100,000 less accumulated depreciation $20,000). On 30 June 2020, P Ltd revalued both assets and the fair value land was $750,000 while fair value of machinery was $110,000. On 30 June 2021, fair value of land was $775,000 but the value of the machinery was unchanged. The tax rate is 30 percent. Required Provide the appropriate journal entries to record the revaluations of assets on 30 June 2020 to 30 June 2021.
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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- P Ltd has two non-current assets: land and machinery at 30 June 2020. The carrying amount of land is $800,000 and machinery is $80,000 (cost $100,000 less
accumulated depreciation $20,000). On 30 June 2020, P Ltd revalued both assets and the fair value land was $750,000 while fair value of machinery was $110,000. On 30 June 2021, fair value of land was $775,000 but the value of the machinery was unchanged.
The tax rate is 30 percent.
Required
Provide the appropriate
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