Question
Maple Inc. owns equipment that it purchased on January 1, 2018 for $4 Million. The following additional information is available: Depreciation:10-year useful life, straight line
Maple Inc. owns equipment that it purchased on January 1, 2018 for $4 Million.
The following additional information is available:
Depreciation:10-year useful life, straight line basis, no residual.
Dec 31, 2018 - Book value (after recording 2018 depreciation): $3,600,000
Dec 31, 2018 - Fair value: $4,500,000
Dec 31, 2019 - Fair value $3,000,000
The company uses the revaluation model (asset adjustment method) to account for its property, plant and equipment.
Instructions
Assuming the entry for the current year's depreciation hasalreadybeen recorded, prepare the entr(ies) at:
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