Question
On January 1, 2019, ABC Company reported the following account balances relating to property, plant and equipment: Land 2,000,000 Building 15,000,000 Accumulated depreciation 3,750,000 Machinery
On January 1, 2019, ABC Company reported the following account balances relating to property, plant and equipment:
Land 2,000,000
Building 15,000,000
Accumulated depreciation 3,750,000
Machinery 3,000,000
Accumulated depreciation 1,500,000
Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2009. The straight line method is used.
On January 1, 2019, the entity decided to revalue the property, plant and equipment.
On such date, competent appraisers submitted the following :
Replacement cost
Land 2,000,000
Building 15,000,000
Machinery 3,000,000
____1. What is the revaluation surplus on January 1, 2019?
A. 15,000,000
B. 11,500,000
C. 30,000,000
D. 8,500,000
____2. What is the depreciation for the current year?
A. 531,250
B. 875,000
C. 525,000
D. 625,000
____3. What is the revaluation surplus on December 31, 2019?
A. 11,075,000
B. 11,150,000
C. 11,050,000
D. 10,850,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started