Question
Exercise 2: Fair value (Revaluation) Accounting for Depreciable Assets On January 1 st , 2019 Nokia Corporation purchases equipment for $ 1,200,00. The equipment has
Exercise 2: Fair value (Revaluation) Accounting for Depreciable Assets
On January 1st, 2019 Nokia Corporation purchases equipment for $ 1,200,00. The equipment has a useful life of 5 years, is depreciated using the straight-line method of deprecation, and its residual value is zero. Nokia uses Fair value option (Accounting Revaluation) for its PPE.
Requirements: Prepare all journal entries based on the following assumptions:
1.On December 31st, 2019, Nokia Corporation received an independent appraisal indicating that the fair value of this equipment is $1,100,000.
2.On December 31st, 2019, Nokia Corporation received an independent appraisal indicating that the fair value of this equipment is $630,000.
3.On December 31st, 2019, Nokia Corporation received an independent appraisal indicating that the fair value of this equipment is $500,000.
Thank you
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Management Accounting
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
6th Canadian edition
013257084X, 1846589207, 978-0132570848
