On 30 June 2022, the statement of financial position of Emaar Ltd showed the following non-current assets
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Question:
On 30 June 2022, the statement of financial position of Emaar Ltd showed the following non-current assets after charging depreciation.
Building
$
600 000
Accumulated depreciation
(200 000)
$
400 000
The company has adopted fair value for the valuation of non-current assets. This has resulted in the recognition in previous periods of an asset revaluation surplus for the building of $28 000. On 30 June 2022, an independent valuer assessed the fair value of the building to be $320 000.
Required
- Prepare any necessary entries to revalue the building as at 30 June 2022
- Assume that the buildinghad remaining useful lives of 25 years, with zero residual value. Prepare entries to record depreciation expense for the year ended 30 June 2023 using the straight-line method.
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