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On 1 3 February 2 0 X 5 , Reekwa Company purchased an office tower for $ 3 1 . 0 million. The office is
On February X Reekwa Company purchased an office tower for $ million. The office is a mixeduse property: it is owner
occupied and includes rental units. The fair value of the building on December is $ million and $ million on
December X
At the time of purchase, the office tower has a remaining useful life of years, and is amortized on a straightline basis.
Required:
Should the office tower be considered property, plant, and equipment or investment property?
Property, plant, and equipment
Investment property
Assume the property is determined to be PPE, and management applies the elimination method for the revaluation model. Prepare
the required journal entries for the revaluation of the office tower in and XIf no entry is required for a
transactionevent select No journal entry required" in the first account field.
Red text indicates no response was expected in a cell or a formulabased calculation is incorrect; no points deducted.
Assume the property is determined to be PPE, and management applies the proportionate method for the revaluation model.
Prepare the required journal entries for the revaluation of the office tower in X and XIf no entry is required for a
transactionevent select No journal entry required" in the first account field.On February times Reekwa Company purchased an office tower for $ million. The office is a mixeduse property: it is owneroccupied and includes rental units. The fair value of the building on December times is $ million and $ million on December times At the time of purchase, the office tower has a remaining useful life of years, and is amortized on a straightline basis. Required: Should the office tower be considered property, plant, and equipment or investment property? Property, plant, and equipment Investment property Assume the property is determined to be PPE, and management applies the elimination method for the revaluation model. Prepare the required journal entries for the revaluation of the office tower in times and times If no entry is required for a transactionevent select No journal entry required" in the first account field. Assume the property is determined to be PPE, and management applies the proportionate method for the revaluation model. Prepare the required journal entries for the revaluation of the office tower in times and times If no entry is required for a transactionevent select No journal entry required" in the first account field.
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