Question 3 (10 marks)

Celeste Company records all its assets under ASPE using the cost model for deprecation. At the end of the current accounting period the company was considering switching to the IFRS reporting model and using the proportionate method for revaluing assets. They want to know what the impact will be if they switch to a revaluation model for assets. A partial section from the Statement of Financial Position shows the following assets:

ACCOUNT	BALANCE
Land	$285,000
Building	$460,000
Accumulated Depreciation Building	$260,000
Equipment	$310,000
Accumulated Depreciation Equipment	$210,000
Goodwill	$360,000

A recent appraisal showed the following values

Land	$310,000
Building	$230,000
Equipment	$85,000
Goodwill	$370,000

Prepare the necessary general journal entries, to revalue the above using the proportionate method. If you choose no journal entry for any accounts, explain why.