Question
Serambi Berhad acquired a two-storey building for use as an office on 1 July 2016 for RM2000000. The building is expected to have a useful
Serambi Berhad acquired a two-storey building for use as an office on 1 July 2016 for RM2000000. The building is expected to have a useful life of 50 years and a residual value of RM100000. Serambi Berhad used the straight-line method to depreciate the building. On July 1 2017, construction of a third floor was completed at a cost of RM38000. The residual value of the building increased to RM200000 while the useful life remains unchanged. The market value of the building was estimated at RM2200000 and RM2500000 on 30 June 2017 and 30 June 2018 respectively.
Prepare the journal entries to record the revaluation of the building on 30 June 2017 and 30 June 2018. (Assume Serambi uses the write-off method)
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