Problem

Comparing U.S. GAAP to IFRS [5-10 min]Winged Wheel Garage, Inc., purchased a parcel of lan...

Comparing U.S. GAAP to IFRS [5-10 min]

Winged Wheel Garage, Inc., purchased a parcel of land on January 3, 2012, for $50,000. Its market value at the end of 20l2 was $55,000.

Requirements

1. Using the U.S. GAAP cost principle, at what value would the land be reported on the balance sheet as of January 3, 2012? What value would the land be reported at on the December 31, 2012, balance sheet?


2. Using IFRS, at what value would the land be reported on the balance sheet as of January 3, 2012? What value would the land be reported at on the December 31, 2012, balance sheet?

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