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XYZ begin trading on 1 January 2005. On that date the company purchased a building for...

XYZ begin trading on 1 January 2005. On that date the company purchased a building for $100,000 to be depreciated over 30 years with no residual value. XYZ uses a revaluation model for buildings.

After five years of trading on 1 January 2010, the building has a fair value of $150,000. It still has a further 25 years of useful life remaining.

Calculate:

(i)        Calculate the revaluation surplus as at 1 January 2020.

(ii)       Show the journal entry to record the revaluation.

(iii)      Calculate the revised depreciation charge after the revaluation

business   accounting   
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Answer #1

2005 = $ 100000 & lô 600 -($ 3333 xs) original cost of building on 1 January useful life = 30 years As per straight line Meth1 Jurnal Entry to record the revaluation Date credit General Account Debit $66650 $66,650 Building Revaluation Reserve to RecFor any clarifications, please comment, thank you.

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