Revaluation of noncurrent assets Crane Ltd had the following noncurrent asset on its balance sheet on 30 June 2024. The company adopts a policy of depreciating all relevant items on a straight-line basis over a 10-year period with no residual value.

$

Building 200 000 Less: Accumulated depreciation (50 000)

150 000 1 What is the carrying amount of the building on 1 January 2025?

2 On 1 January 2025, the directors of Crane decide to revalue the building to $400 000 to reflect its market value. Prepare the necessary journal entries.