Question
Bronte Ltd has an accounting policy of measuring property, plant and equipment at cost. It has a parcel of land, which it acquired in 2021
Bronte Ltd has an accounting policy of measuring property, plant and equipment at cost. It has a parcel of land, which it acquired in 2021 at a cost of$500 000. In 2022 it was determined that the recoverable amount was$450 000.
In 2023 the organisation switched to the fair-value model. The land was considered to have a fair value of$510 000in 2023.
REQUIRED
Provide the accounting journal entries to account for the changes in the value of the land in 2022 and 2023.
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Management And Cost Accounting
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
7th Edition
1292232668, 978-1292232669
