Accompany revalued its land and buildings at the start of the year to $. 10 million ($. 4million for land). The property cost $. 5million ($.1million for the land) ten years prior to the revaluation. The building’s estimated useful life is 50 years. The company’s policy is to make an annual transfer of realized amounts to retained earnings.

Required. a. Show the effect of the above transactions on the financial statements at the end of year 10. 

Question 9: Merry opens a new factory and receives government grant of $ 300,000 in respect of capital equipment costing $ 2,000,000. Depreciation on plant and machinery at 20% straight line

Required: Extract statement of financial position in the first year, using both methods.