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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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You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
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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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