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Elliot Co bought land and building for $300,000 on 1 Jan 2013
which included $50,000 for the land. The assets had a useful
life of 50 years.On 1 Jan 2017, Elliot Co revalued the assets to their current
value. The valuation was $800,000 in total including $110,000
for the land.There was no change in remaining life of the assets
after revaluation.What should be the balance on revaluation surplus
immediately after revaluation?The answer is $520,000. They have depreciated the building but not the land. Is it because land is generally not depreciated? So in the exam, if nothing is mentioned, I should not depreciate land?
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