Question 3

Accompany revalued its land and buildings at the start of the year to $. 10 million ($. 4million for land). The property cost $. 5million ($.1million for the land) ten years prior to the revaluation. The buildings estimated useful life is 50 years. The companys policy is to make an annual transfer of realized amounts to retained earnings.

Required. a. Show the effect of the above transactions on the financial statements at the end of year 10. show work details (10 marks)