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On 31 January 20X8, Westvale Co disposed of a building for $450,000. The building was
accounted for using the revaluation model. At the date of disposal, after deduction of
accumulated depreciation of $90,000, the building had a carrying amount of $310,000. It also
had a revaluation surplus in equity of $30,000.
What was Westvale Co’s profit on disposal of the building for inclusion in the statement of profit or loss for the year ended 31 December 20X8?Sir! I’m confused ? Can you please answer this question and explain to me ????
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Sir , the revaluation surplus does take part in profit or loss on disposal right !
And in book there is ans (450000 – 110000)= 140000.
Sir I know 450000 is from question But I don’t understand how 110000 came ?
Can please explain this to me ?
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