Question 211 marks

Zinnia Inc., a publicly listed company, purchased a warehouse on January 1, 2019 for $1,550,000. The company

has chosen to use the revaluation model to account for its structures and revalues them annually.

uses straight-line depreciation over the asset's 10-year useful life with no residual value.

The asset's fair values were as follows:

Dec 31, 2019:Equal to its carrying amount.

Dec 31, 2020:$1,368,000.

Dec 31, 2021:$1,047,000.

Instructions

2.1Assuming Zinnia uses the asset adjustment (elimination) method for revaluation, adjusting journal entries for the year-end's of 2019, 2020 and 2021.