Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, year 1, Laagan Company owned a building with historical cost of 32,000,000 depreciated over a 40 year life on a straight line

On January 1, year 1, Laagan Company owned a building with historical cost of

32,000,000 depreciated over a 40 year life on a straight line method. Revaluation model was

adopted by the entity in measuring its property, plant and equipment. The building has already

been revalued twice with the following fair values:

January 1, Year 2 37,440,000

January 1, Year 4 44,400,000

Required:

125

1. What is the revaluation surplus on January 1, Year 2?

2. What is the increase in revaluation surplus to be recognized as component of other

comprehensive income on January 1, year 4?

3. What is the revaluation surplus to be reported in the statement of changes on December 31,

Year 4?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Accounting questions

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago

Question

8. How can an interpreter influence the message?

Answered: 1 week ago