Question
A business purchased a building for $300,000 (GST exclusive). The business has been depreciating the building at a rate of 3.1% on a straight line
A business purchased a building for $300,000 (GST exclusive). The business has been depreciating the building at a rate of 3.1% on a straight line basis for the last 10 years. In the current financial year the business decides to revalue the building and has established that its current value is $510,000. As a result of the revaluation, the business will:
a.Debit Building Revaluation Reserve $210,000 and Credit Building $210,000
b.Debit Building $210,000 and Credit Building Revaluation Reserve $210,000
c.Debit Building $303,000 and Credit Building Revaluation Reserve $303,000
d.Debit Building Revaluation Reserve $303,000 and Credit Building $2303,000
help with explanation please!
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