Great Heights Co. is a manufacturer of escalators and elevators. The following provides information on two types of property, plant, and equipment as at the end of fiscal year 2020. (Click the icon to view the data.) Required Requirement a. Using the information in the problem statement, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information in any of the subsequent requirements of this problem. Assembly-line equipment 2021 Depreciation Factory building Requirement b. At the beginning of fiscal year 2021, Great Heights conducted appraisals of these assets. The appraisals indicate that the factory building is worth $11.4 million while the equipment is worth $960,000. While the company has conducted regular appraisals in the past, these are the first appraisals to show significant deviations of fair value from carrying value. In other words, there have been no revaluation surpluses or losses on these assets prior to 2021. For the revaluation on the equipment, the company has chosen to use the proportional method. For the building, the company will use the elimination method. Record the journal entries to revalue these two assets at the beginning of 2021 Begin by recording the journal entry for the revaluation adjustment on the equipment using the proportional method. Data Required Date Accounts Debit Credit 2021 Assembly-line equipment $2,000,000 nil Now record the journal entry for the revaluation adjustment on the building using the elimination method. (Record del Factory building $15,000,000 $1,000,000 35 years 20 years Straight-line $6,000,000 Date Accounts Debit Cost Estimated residual value Estimated useful life on purchase date Remaining useful life at the end of fiscal 2020 Depreciation policy Accumulated depreciation at end of 2020 Credit 2021 10 years 6 years Straight-line $800,000 a. Using the above information, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information below. b. At the beginning of fiscal year 2021, Great Heights conducted appraisals of these assets. The appraisals indicate that the factory building is worth $11.4 million while the equipment is worth $960,000. While the company has conducted regular appraisals in the past, these are the first appraisals to show significant deviations of fair value from carrying value. In other words, there have been no revaluation surpluses or losses on these assets prior to 2021. For the revaluation on the equipment, the company has chosen to use the proportional method. For the building, the company will use the elimination method. Record the journal entries to revalue these two assets at the beginning of 2021 C. Using the amounts after revaluation, compute the depreciation that would be recorded on each of the two assets for 2021. d. At the beginning of fiscal year 2022. Great Heights conducted another appraisal, which showed a value of $8.9 million for the building and $880,000 for the equipment. For consistency of accounting policies, the company must use the same revaluation policies as in 2021 (see requirement b above). Record the journal entries to revalue these two assets at the beginning of 2022 Print Done Requirement c. Using the amounts after revaluation, compute the depreciation that would be recorded on each of th Factory Assembly-line equipment building Great Heights Co. is a manufacturer of escalators and elevators. The following provides information on two types of property, plant, and equipment as at the end of fiscal year 2020. (Click the icon to view the data.) Required Requirement a. Using the information in the problem statement, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information in any of the subsequent requirements of this problem. Assembly-line equipment 2021 Depreciation Factory building Requirement b. At the beginning of fiscal year 2021, Great Heights conducted appraisals of these assets. The appraisals indicate that the factory building is worth $11.4 million while the equipment is worth $960,000. While the company has conducted regular appraisals in the past, these are the first appraisals to show significant deviations of fair value from carrying value. In other words, there have been no revaluation surpluses or losses on these assets prior to 2021. For the revaluation on the equipment, the company has chosen to use the proportional method. For the building, the company will use the elimination method. Record the journal entries to revalue these two assets at the beginning of 2021 Begin by recording the journal entry for the revaluation adjustment on the equipment using the proportional method. Data Required Date Accounts Debit Credit 2021 Assembly-line equipment $2,000,000 nil Now record the journal entry for the revaluation adjustment on the building using the elimination method. (Record del Factory building $15,000,000 $1,000,000 35 years 20 years Straight-line $6,000,000 Date Accounts Debit Cost Estimated residual value Estimated useful life on purchase date Remaining useful life at the end of fiscal 2020 Depreciation policy Accumulated depreciation at end of 2020 Credit 2021 10 years 6 years Straight-line $800,000 a. Using the above information, compute the depreciation that would be recorded on each of the two assets for 2021. Do not use the information below. b. At the beginning of fiscal year 2021, Great Heights conducted appraisals of these assets. The appraisals indicate that the factory building is worth $11.4 million while the equipment is worth $960,000. While the company has conducted regular appraisals in the past, these are the first appraisals to show significant deviations of fair value from carrying value. In other words, there have been no revaluation surpluses or losses on these assets prior to 2021. For the revaluation on the equipment, the company has chosen to use the proportional method. For the building, the company will use the elimination method. Record the journal entries to revalue these two assets at the beginning of 2021 C. Using the amounts after revaluation, compute the depreciation that would be recorded on each of the two assets for 2021. d. At the beginning of fiscal year 2022. Great Heights conducted another appraisal, which showed a value of $8.9 million for the building and $880,000 for the equipment. For consistency of accounting policies, the company must use the same revaluation policies as in 2021 (see requirement b above). Record the journal entries to revalue these two assets at the beginning of 2022 Print Done Requirement c. Using the amounts after revaluation, compute the depreciation that would be recorded on each of th Factory Assembly-line equipment building