Metlock Inc., a publicly listed company, has a building with an initial cost of $381,000. At...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Metlock Inc., a publicly listed company, has a building with an initial cost of $381,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $106,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $302,500. Your answer is partially correct. Prepare the journal entries to revalue the plant under the revaluation model using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Accumulated Depreciation - Buildings 106000 Buildings 106000 (To eliminate the accumulated depreciation) Dec. 31, 2020 Revaluation Surplus (OCI) 169000 Buildings 169000 (To adjust the Buildings account to fair value) e Textbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry to revalue the plant under the revaluation model using the proportionate method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Buildings 275000 Accumulated Depreciation - Buildings 106000 Revaluation Gain or Loss (To adjust the Buildings account (net) to fair value) Metlock Inc., a publicly listed company, has a building with an initial cost of $381,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $106,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $302,500. Your answer is partially correct. Prepare the journal entries to revalue the plant under the revaluation model using the asset adjustment method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Accumulated Depreciation - Buildings 106000 Buildings 106000 (To eliminate the accumulated depreciation) Dec. 31, 2020 Revaluation Surplus (OCI) 169000 Buildings 169000 (To adjust the Buildings account to fair value) e Textbook and Media List of Accounts Your answer is partially correct. Prepare the journal entry to revalue the plant under the revaluation model using the proportionate method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Buildings 275000 Accumulated Depreciation - Buildings 106000 Revaluation Gain or Loss (To adjust the Buildings account (net) to fair value)
Expert Answer:
Answer rating: 100% (QA)
Asset Adjustment Method Carrying Amt of Asset Cost of Asset Accumulated Depreciation 381000106000 ... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
A ball is shot from the top of a building with an initial velocity of 18m/s at an angle = 42o above the horizontal. (a) What are the x and y components of the initial velocity? (b) If a nearby...
-
A project with an initial cost of $314,000 will generate no returns in the first two years of operations and operating cash flows of $150,000 per year in Years 3, 4, and 5. If the required rate of...
-
The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on...
-
You are currently serving as president and chief executive officer of a unit bank that has been operating out of its present location for five years. Due to the rapid growth of households and...
-
A steel bar of thickness h is welded to a vertical support as shown in the figure. What is the shear stress in the throat of the welds due to the forceF? 100 kN 30 mm 5 mm 50 mm
-
General Mills, Inc. The fiscal year 2017 annual report of General Mills, Inc. is available on this book's Website. Required a. Calculate (or identify) the following financial ratios for 2016 and...
-
During the first month of operations, Cloutier Heating and Air Conditioning, Inc., completed the following transactions: Requirements 1. Record each transaction in the journal. Key each transaction...
-
Problem 1 San Bartolome Company uses job order cost accumulation procedures. Manufacturing related-costs for February were: Work in process, February 1 (Job 20) P109,000 Materials and supplies...
-
a. What is the cost per camera (ignoring taxes) for Edwards Electronics and for Sears? b. For each store, what is the minimum selling price required to cover cost, over-head, and desired profits? c....
-
Shop Around for the Best Deal Darnell is shopping around for a credit card and does not expect to pay the balance in full each month. Darnell isn't a big spender and will carry small balances from...
-
How can the principles of sustainable development be effectively integrated into national policies to address global challenges such as poverty, inequality, and environmental degradation ?
-
Suppose a car runs over a nail while driving at a speed of 6 2 miles per hour, and the nail is lodged in the tire tread 1 2 inches from the center of the wheel. What is the angular velocity of the...
-
Give an example of a change an organization may make when responding to each of Thornburn and Langdale's Drivers of Change.
-
What are the driving factors behind recent shifts in global migration patterns, and how are countries adjusting their immigration policies to address both economic needs and humanitarian concerns ?
-
What ethical considerations must be balanced when determining the legitimacy and scope of humanitarian interventions in sovereign nations, and how can international law be used to guide these...
-
6 0/1 point For w=333 lb/ft and L=2.9 ft, the resulting FBD = 2(333)(2.9) 1.5 lb, determine the resultant internal moment on the cross-section at point E [lb-ft]. L W B 30 FBD 8,289 Ax 15 1 4 L Ay 7...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
In the IASB standard-setting conceptual framework, the word reliability has been replaced with faithful representation. This has caused much discussion among preparers of financial information. The...
-
Assume the facts given in BE6.33 for Darwin Corporation. Assume billings for the construction contract were as follows: 2020, $500,000; 2021, $2 million; and 2022, $1.7 million. Calculate the balance...
-
Fortini Corporation had record sales in 2020. It began 2020 with an Accounts Receivable balance of $475,000 and an Allowance for Doubtful Accounts of $33,000. Fortini recognized credit sales during...
-
Smith & Sons reports interest expense of \($90,000\) on its income statement. The beginning and ending balances for interest payable reported on its balance sheet are \($10,000\) and \($15,000,\)...
-
Explain how to convert before-tax cash operating expenses and depreciation deductions into after-tax amounts.
-
Smith & Sons reports sales revenue of \($1,000,000\) on its income statement. Its balance sheet reveals beginning and ending accounts receivable of \($60,000\) and \($92,000,\) respectively. What is...
Study smarter with the SolutionInn App