Question
ABC Ltd. has an item of plant whose current carrying amount is 400 000 (accumulated depreciation being 40 000). The asset had cost 600 000.
ABC Ltd. has an item of plant whose current carrying amount is €400 000 (accumulated depreciation being €40 000). The asset had cost €600 000. It was revalued downwards from a carrying amount of €540 000 to €440 000, with the following accounting entry being passed:
Dr Accumulated Depreciation 60 000
Dr Loss – Downward Revaluation of Plant (P&L) 100 000
Cr Plant 160 000
Show the appropriate accounting entries, if the plant is now assessed as having a fair value of €460 000. The tax rate is 30%.
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Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
4th Edition
978-0730302414, 0730302415
