Question
Company X prepares financial statements to 31 May each year. On May 2017, the company acquired land for 400.000 . This land was revalued at
Company X prepares financial statements to 31 May each year. On May 2017, the company acquired land for 400.000 . This land was revalued at 450.000 on 31 May 2018 and at 375.000 on 31 May 2019. (b) Company Y prepares financial statements to 30 June each year. On 30 June 2017, the company acquired land for 600.000 . This land was revalued at 540.000 on 30 June 2018 and at 620.000 on 30 June 2019. Assuming that both companies use the revaluation model, explain (by applying journal entries!) how each revaluation should be dealt with if the asset is. Please give me journal entries.
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