Question
On January 1, 2017, Anthony Ltd. acquires a building at a cost of $230,000. The building is expected to have a 20-year life and no
On January 1, 2017, Anthony Ltd. acquires a building at a cost of $230,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2019, the fair value of the building is appraised at $205,000, and on December 31, 2022, its fair value is $150,000. Anthony Ltd. applies IFRS. Instructions (Round to the nearest dollar in all calculations.) (a) (3 marks) Prepare the depreciation journal entry required on December 31, 2017, 2018, and 2019. (b) (4 marks) Prepare the revaluation journal entries required on December 31, 2019. (c) (3 marks) Prepare the depreciation journal entry required on December 31, 2020, 2021, 2022
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