Korbu Berhad is a snacks manufacturer. Korbu Berhad measures all of its assets using the revaluation...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Korbu Berhad is a snacks manufacturer. Korbu Berhad measures all of its assets using the revaluation model. On 1 January 2019, an independent valuation of all Korbu Berhad's assets was carried out. However, the new valuations have not been incorporated into Korbu Berhad's financial statements for the year 2019. Relevant details are as per below: Aset-aset/ Assets Land (0) Buildings Machinery Carrying amount Fair value at 1 at 1 January January 2019 2019 Dikehendaki/Required: (ii) Estimated remaining useful life at 1 January 2019 RM3,200,000 RM4,000,000 RM7,624,000 RM10,000,000 40 tahun/years RM3,262,800 RM1,800,000 8 tahun/years Korbu Berhad has a revaluation surplus reserve of RM500,000 in respect of revaluations of machinery. Annual depreciation charge as at 31 December 2018 RM 86,000 RM485,200 Explain why might a company choose not to use revaluation accounting for their assets? (1 markah/mark) Prepare the necessary journal entries to record revaluation for land, building and machinery on 1 January 2019. (6 markah/marks) Korbu Berhad is a snacks manufacturer. Korbu Berhad measures all of its assets using the revaluation model. On 1 January 2019, an independent valuation of all Korbu Berhad's assets was carried out. However, the new valuations have not been incorporated into Korbu Berhad's financial statements for the year 2019. Relevant details are as per below: Aset-aset/ Assets Land (0) Buildings Machinery Carrying amount Fair value at 1 at 1 January January 2019 2019 Dikehendaki/Required: (ii) Estimated remaining useful life at 1 January 2019 RM3,200,000 RM4,000,000 RM7,624,000 RM10,000,000 40 tahun/years RM3,262,800 RM1,800,000 8 tahun/years Korbu Berhad has a revaluation surplus reserve of RM500,000 in respect of revaluations of machinery. Annual depreciation charge as at 31 December 2018 RM 86,000 RM485,200 Explain why might a company choose not to use revaluation accounting for their assets? (1 markah/mark) Prepare the necessary journal entries to record revaluation for land, building and machinery on 1 January 2019. (6 markah/marks)
Expert Answer:
Answer rating: 100% (QA)
Answer hence solved it Explain why a company choose not to use revaluation accounitng fo... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
Students also viewed these accounting questions
-
Why might a company choose not to use revaluation accounting?
-
Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Pitts Co.: March 1: Issued $2,000,000 face value Pitts Co. seconds mortgage,...
-
Prepare the necessary journal entries to record each of the following transactions of Dewey County College. 1. Tuition and fees charged for the fall 20X8 semester totaled $3,700,000; $100,000 of this...
-
What approaches to recruitment can an employer adopt in order to create and project a positive public image?
-
The managements of two different companies argue that because of specific conditions in their companies, recording depreciation expense should be suspended for 2011. Evaluate carefully their...
-
Patrick sold his shares of AT&T (T). a. How many shares did he sell? b. For how much did each share sell? c. Based on Patrick's sale, what was the closing price of T on the previous trading day? GE...
-
Pentamedia owns 90 percent of Sesa. At the start of 2016, Sesa sold buildings carried at \($4,000,000\), net, to Pentamedia for \($6,000,000\). The buildings had a remaining life of 10 years and...
-
John, Jake, and Joe are partners with capital accounts of $90,000, $78,000, and $64,000 respectively. They share profits and losses in the ratio of 30:40:30. When the partners decide to liquidate,...
-
You??re trying to save to buy a new $241,000 Ferrari. You have$50,000 today that can be invested at your bank. The bank pays 5.0percent annual interest on its accounts. How long will it be beforey 2...
-
Refer to the first 100 minutes of the computer simulation of the current operation of Herr Cutter's barber shop presented in Figure 12.7 and summarized in Figure 12.8. Now consider the alternative of...
-
Write a paper about SOCIAL MEDIA AND FACILITIES MANAGEMENT 1. Discuss the role of social media in the facilities management profession. 2. Discuss five social media platforms you think is the most...
-
Define VM sprawl and discuss its impact on resource utilization and management in virtualized infrastructures. What strategies can be employed to mitigate VM sprawl and optimize resource allocation ?
-
(1) William and Melinda purchased a property together in 2000 as a married couple. The deed to the property reflected that they were married. In 2020, they gave the property to their son, Mark, with...
-
10. 18. Robert and Diana are married and usually file a joint tax return. They each have the following income items. a) Robert, who is a controller of a company - W-2 Wages: 250,000. He is covered...
-
Consider that you are 35 years old and have just changed to a new job. You have $143,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new...
-
What do you think about the effect that an equal time sharing arrangement has on the amount of child support versus an unequal time sharing arrangement, and what implications do you believe that may...
-
As you think about CVS Health's ability to forecast future sales and profit, what are two or three of the most significant variables that are difficult to predict? What information and data would you...
-
The company manufactures three products: wooden chairs, tables and dressers. AFC started off as a 'Mom & Pop' shop but has grown rapidly. AFC uses one assembly line to build all three products,...
-
Canadian Tire Corporation, Limited is one of Canada's best-known retailers. The company operates 488 "hard-goods" retail stores through associate dealers, and a total of 385 corporate and franchise...
-
In 1985, Lincoln Limited completed the construction of a building at a cost of $ 1.8 million; it occupied it in January 1986. It was estimated that the building would have a useful life of 40 years...
-
Below are the completed financial statement columns of the work sheet for Canned Heat Limited: Instructions (a) Prepare a statement of comprehensive income, statement of changes in shareholders'...
-
For \(a>0\), find the Fourier transform, \(\hat{f}(k)\), of \(f(x)=e^{-a|x|}\).
-
For the case that a function has multiple roots, \(f\left(x_{i} ight)=0, i=1,2, \ldots\), it can be shown that \[\delta(f(x))=\sum_{i=1}^{n} \frac{\delta\left(x-x_{i}...
-
Find a Fourier series representation of the Dirac delta function, \(\delta(x)\), on \([-L, L]\).
Study smarter with the SolutionInn App