Question
Entity A has a year-end of 31 December and the following accounting policies for property, plant and equipment are : annually on 31 December for
Entity A has a year-end of 31 December and the following accounting policies for property, plant and equipment are :
annually on 31 December for the preparation of financial statements.
"The measurement policies for owner-occupied property, investment property and all other assets are based on rev; respectively. Depreciation is calculated on an annual basis. Entity A uses straight-line depreciation. No residual value for annual transfer from revaluation reserves to retained earnings."
Entity A purchased a property in North Point (Property NP) which is a commercial property on 1 March 2020 at a cos $6,048,000). The estimated useful life of the property NP is 40 years from the date of purchase. Entity A used the propert On 31 December 2021, Property NP was valued at $10,810,000. The estimated remaining useful life was revised to 40 ye On 1 January 2022, Entity A purchased a property in Prince Edward (Property PE) at a cost of $13,000,000 for capi Property PE is 50 years from the date of purchase. The fair value of Property PE on 31 December 2022 was $12,500,000
Property NP was sold for $12,000,000 on 30 June 2022.
You are required to assume the allocation between the measurement of land and building is based on 4: 6 of the property
Entity A has a year-end of 31 December and the following accounting policies for property, plant and equipment are :
annually on 31 December for the preparation of financial statements.
"The measurement policies for owner-occupied property, investment property and all other assets are based on rev; respectively. Depreciation is calculated on an annual basis. Entity A uses straight-line depreciation. No residual value for annual transfer from revaluation reserves to retained earnings."
Entity A purchased a property in North Point (Property NP) which is a commercial property on 1 March 2020 at a cos $6,048,000). The estimated useful life of the property NP is 40 years from the date of purchase. Entity A used the propert On 31 December 2021, Property NP was valued at $10,810,000. The estimated remaining useful life was revised to 40 ye On 1 January 2022, Entity A purchased a property in Prince Edward (Property PE) at a cost of $13,000,000 for capi Property PE is 50 years from the date of purchase. The fair value of Property PE on 31 December 2022 was $12,500,000
Property NP was sold for $12,000,000 on 30 June 2022.
You are required to assume the allocation between the measurement of land and building is based on 4: 6 of the property
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