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AT Travel Limited acquired a two-story building for use as an office on June 30, 2012 at $2 milllion. The building is expected to have

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AT Travel Limited acquired a two-story building for use as an office on June 30, 2012 at $2 milllion. The building is expected to have a useful life of 20 years and a residual value of $100,000. The company used the straight-line method to depreciate the building. On July 1. 2013, the company paid $38,000 for the completion the newly built car park lots at the back of the building. The market value of the building was estimated at $2.2 million and $2.5 million on June 30, 2013 and 2014 respectively. Required: 1. Determine the carrying amount of the building as at June 30, 2013 and 2014 if the company used the cost method to account for the building. 2. Determine the carrying amount of the building as at June 30, 2013 and 2014 if the company used the revaluation method to account for the building where the balance of the accumulated depreciation on date of revaluation is adjusted using: (a) the write-off method, and (b) the proportionate restatement method. Using the facts from E 11-28, assume that AT Travel Limited decided to rent out the building on June 30, 2014 to an unrelated party. The company used the fair value method to account for its investment property. The market value of the building was estimated at $3 million on June 30. 2015. The company subsequently sold the building for cash of $2.8 million on July 31, 2015. Required: 1. Discuss the accounting for change in use of property from property, plant and equipment to investment property on June 30, 2014. 2. Show the journal entries to record the change in use of the building and its subsequent disposal assuming that the company was using the cost method for the building prior to its change in use. Refer to the facts in E 11-28, assume that the company used the revaluation method to account for the building and adjust the balance of the accumulated depreciation on date of revaluation using the write-off method. Required: Determine the carrying amount of the building as at June 30, 2013 and 2014 and show the journal entries to record the changes in the carrying amount of the building for each of the following scenarios. 1. The market value of the building was estimated at $1.9 million and $1.5 million on June 30, 2013 and 2014 respectively. .The market value of the building was estimated at $2.2 million and $1.9 million on June 30, 2013 and 2014 respectively. 3. The market value of the building was estimated at $1.9 million and $2.2 million on June 30, 2013 and 2014 respectively

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