REVALUATION- IAS 16 QUESTION 6 On January 1, Year 1, LBC Limited acquires a building at a cost of GH50,000. The building is expected to have a 25-year life and no residual value. The asset is accounted for under the revaluation model and revaluations are carried out every three years. On December 31, Year 3, the fair value of the building is appraised at GH45,000. Required: Prepare the entries required on December 31, Year 3 QUESTION 7 Joyce Limited purchased land and building on 1st January, 2012 for GH200,000 (land GH60,000 and buildings GH140,000). While there is no depreciation on land, however the company uses 5% reducing balance method on building. On 1st January 2016 the land was revalued to GH75,000 and the buildings to GH135,000. Depreciation on buildings is computed at 4% reducing balance. The financial statements are prepared on a yearly basis. Required: Calculate the revaluation reserve for the year ended 31st December, 2016