On January 1, 2015, Lewis Cosmetics buys a shop in London for 350,000. They only intend on owning it 5 years because they hope to move to a larger building which is currently being designed and built. They believe the shop they currently own will be worth 250,000 in 5 years. Every year, they reappraise the building. The building is determined to be worth 310,000 on Jan.1, 2016, 305,000 on Jan. 1, 2017, 300,000 on Jan. 1, 2018, 270,000 on Jan. 1, 2019, and is sold for 250,000 on Jan. 1, 2020. The estimates of the residual value and useful life have never changed over the life of the building. Show the effects of the building on both the balance sheet and income statement using the Reevaluation. Method Model.

Statement of Financial Position

	2015	2016	2017	2018	2019
PPE
Accumulated Depreciation
Net PPE
Revaluation Surplus
Retained Earnings

Income Statement

	2015	2016	2017	2018	2019
Depreciation Expense
Gain (Loss) on Fair Value
Net Income
OCI
Comprehensive Income

Overall Effects

Depreciation Expense:

Gain (Loss):

Net Income:

OCI:

Comprehensive Income: