Question
Answer the following questions: A property was purchased on 1 January 20X0 for $2m (estimated depreciable amount $1m useful economic life 50 years). Annual depreciation
Answer the following questions:
A property was purchased on 1 January 20X0 for $2m (estimated depreciable amount $1m useful economic life 50 years).
Annual depreciation of $20,000 was charged from 20X0 to 20X4 inclusive and on 1 January 20X5 the carrying value of the property was $1.9m.
The property was revalued to $2.8m on 1 January 20X5 (estimated depreciable amount $1.35m the estimated useful economic life was unchanged).
Required Calculate the revaluation gain and prepare the journal entry to account for the revaluation and compute the revised annual depreciation charge.
I need the journal entry in a chart.
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