Question
Teal Corp., in accordance with IFRS, applies revaluation accounting to plant assets with a carrying amount of $392,000, a useful life of 4 years, and
Teal Corp., in accordance with IFRS, applies revaluation accounting to plant assets with a carrying amount of $392,000, a useful life of 4 years, and no residual value. At the end of year 1, independent appraisers determine that the asset has a fair value of $352,800. Prepare the entries to record this revaluation and depreciation, assuming straight-line depreciation. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter an account title to record depreciation expense in year 1 | enter a debit amount | enter a credit amount |
enter an account title to record depreciation expense in year 1 | enter a debit amount | enter a credit amount |
(To record depreciation expense in year 1) | ||
enter an account title to adjust the plant assets to fair value and record unrealized gain | enter a debit amount | enter a credit amount |
enter an account title to adjust the plant assets to fair value and record unrealized gain | enter a debit amount | enter a credit amount |
enter an account title to adjust the plant assets to fair value and record unrealized gain | enter a debit amount | enter a credit amount |
(To adjust the plant assets to fair value and record unrealized gain) |
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