Revaluation Model- Market approach Corona Co. Determined the following information for the purpose of revaluating its building: Historical cost 30,000,000 Accumulated depreciation 9,000,000 fair Value 25,200,000 Remaining useful life (at a revaluation date ) 8 years Depreciation Method SLM Residual Value 1,200,000 Income tax rate 30% Requirements: a. Compute for the revaluation surplus, net of tax b. Provide the entry to record the revaluattion surplus using (1) proportional method and (2) Elimination Method. c. Determine the revised annual depreciation after the revaluation.
Revaluation Model- Market approach
Corona Co. Determined the following information for the purpose of revaluating its building:
Historical cost 30,000,000
fair Value 25,200,000
Remaining useful life (at a revaluation date ) 8 years
Depreciation Method SLM
Residual Value 1,200,000
Income tax rate 30%
Requirements:
a. Compute for the revaluation surplus, net of tax
b. Provide the entry to record the revaluattion surplus using (1) proportional method and (2) Elimination Method.
c. Determine the revised annual depreciation after the revaluation.
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