Question
Canadian Accounting: On December 31, 20x0, the Nevue Corporation purchased two office buildings. Nevue decided to use the revaluation model for the buildings. Data for
Canadian Accounting:
On December 31, 20x0, the Nevue Corporation purchased two office buildings. Nevue decided to use the revaluation model for the buildings. Data for the two buildings is as follows:
Building 1 | Building 2 | |
Original cost | $12,000,000 | $8,000,000 |
December 31, 20x2 Fair Value | 12,200,000 | 7,350,000 |
December 31, 20x4 Fair Value | 10,600,000 | 7,000,000 |
December 31, 20x6 Fair Value | 10,400,000 | 6,900,000 |
The useful life of each building is 40 years with no residual value. On June 30, 20x7, Building 2 is sold for $6,850,000. Required
a) Write all journal entries for Building 1 from Dec 31, 20x0 to December 31, 20x6.
b) Write all journal entries for Building 2 from Dec 31, 20x0 to June 30, 20x7.
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