Question

Show Attempt History Current Attempt in Progress A partial statement of financial position of Ivanhoe Ltd. on December 31, 2019, showed the following property, plant, and equipment assets accounted for unde cost model (accumulated depreciation includes depreciation for 2019): Buildings Less: accumulated depreciation Equipment Less: accumulated depreciation 5337,000 137.000 $200.000 $125.000 45.000 80.000 Ivanhoe uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment remaining useful life of years residual value). Ivanhoe applies IFRS and has decided to adopt the revaluation model for its building and equipment effective December 31, 2019. On this date. independent appraiser assessed the fair value of the building to be $157.000 and that of the equipment to be $90.000 (a)

Answer 1

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Date	Account Titles and Explanation	Debit	Credit
Dec.31, 2020	Accumulated Depreciation - Building	$137,000
	Building		$137,000
	(being accumulated depreciation eliminated)
Dec.31, 2020	Revaluation Loss	$43,000
	Building		$43,000
	(being building a/c adjusted to FV)
Dec.31, 2020	Accumulated Depreciation - Equipment	$45,000
	(being accumulated depreciation eliminated)		$45,000
	(To eliminate the accumulated depreciation)
Dec.31, 2020	Equipment	$10,000
	Revaluation Gain		$10,000
	(being equipment a/c adjusted to FV)
	Loss from Revaluation = $ 200,000 - $ 157,000 = $ 43,000
	Gain from Revaluation = $ 80,000 - $ 90,000 = $ 10,000