Question
BBB Company purchases equipment for $1,000 on 1/1/2014. BBB uses the straight-line method for depreciation. Under IFRS, BBB chooses to revaluate its equipment every 12/31.
BBB Company purchases equipment for $1,000 on 1/1/2014. BBB uses the straight-line method for depreciation. Under IFRS, BBB chooses to revaluate its equipment every 12/31.
The information on the questions [1] and [2] is connected.
Please answer the following questions.
[1] On 1/1/2014, the equipment has a useful life of 9 years and its residual value is $100. The fair value of equipment on 12/31/2014 is $950. Prepare all the necessary journal entries on 12/31/2014.
[2] On 1/1/2015, the equipment has a useful life of 8 years and its residual value is $150. The fair value of equipment on 12/31/2015 is $750. Prepare all the necessary journal entries on 12/31/2015.
SHOW CALCULATIONS PLEASE
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Accountancy Analysis Of Financial Statements Analysis Of Financial Statements
Authors: M. Hanif, A. Mukherjee
1st Edition
1642879762, 9781642879766
