Question
Purple Co Ltd purchased an item of land 3 years ago at a cost of $700 000. Two years ago the recoverable value of the
Purple Co Ltd purchased an item of land 3 years ago at a cost of $700 000. Two years ago the recoverable value of the land was considered to be $550 000. In the current period the land is revalued and the fair value is now $750 000. What is the treatment of the change in value in each of the periods?
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
9th edition
125956455X, 978-1259564550
