Question 1: K. McCombie, (2021)

Apple Ltd acquired a building on 1 March 2018 at a cost of $330,000. The building had a useful life of 20 years and a residual value of $30,000.

On 30 June 2021 Apple Ltd decided to adopt the revaluation model to measure buildings.

Fair value for the building on 30 June 2021 is $260,000

Depreciation has not been recorded for the year-end 30 June 2021.

Depreciation method is straight-line, reporting period ends 30 June, and the tax rate is 30%.

Required: Record the necessary journal entries to revalue the building on 30 June 2021.