Question
Answer the following question: Anna Clarke Ltd. uses the revaluation surplus for their buildings. On December 31, 2023, the company had the balances: Buildings, $1,100,000,
Answer the following question:
Anna Clarke Ltd. uses the revaluation surplus for their buildings. On December 31, 2023, the company had the balances: Buildings, $1,100,000, Acc Depr: $165,000, Revaluation Surplus: $112,000. The FV of the buildings on December 31, 2023, was $795,000. The company uses the proportionate method. The company would report at year end:
Revaluation Surplus $0
Loss on Revaluation $28000
Show and explain clearly how these numbers were gotten and the reasoning why.
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Auditing Cases An Interactive Learning Approach
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
7th Edition
0134421825, 9780134421827
