Question
Sunshine Limited acquired some land in 2017 at a cost of $4 million. It measures land at cost. In 2018 it was determined that the
Sunshine Limited acquired some land in 2017 at a cost of $4 million. It measures land at cost. In 2018 it was determined that the recoverable amount of the land was $6 million. In 2019 it was determined that the recoverable amount of the land was $3 million. In 2020 it was decided to switch to the revaluation model and to revalue the land to its fair value, which was then assessed as having increased to $7 million.
Required:
Provide necessary journal entries (with narrations) to record the above movements in value in each of the respective years.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started