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Tom owns a building which he bought it 30 years ago for $150,000 and depreciating it over 50 years. At the start of 20X0 he decides to revalue the unit $900,000. The has a remaining useful life of 20 years. A transfer is make in reserves for excess depreciation each year.
Find:
Book value=?
Revalued amount=?
Revaluation gain at 1 Jan 20X0=?
Excess depreciation expense=?
Revaluation gain 31 Dec 20X0=?What is the entry for the revaluation gain on 1 Jan 20X0
What is the entry for the excess depreciation expense on 31 Dec 20X0?
There is no point in simply typing out a full question and expecting me to provide a full answer. You must have an answer in the same book in which you found the question and so ask about whatever it is in the answer that you are not clear about – then I will explain!!
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