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[Question 1]
On 1 January 20X2 Lumos purchased a property with a useful life of 20 years for $200,000
On 1 January 20X4 Lumos revalued the property down to $144,000CA @ 31 December 20X3: $180,000
Accounting record at 1 January 20X4
Dr. Revaluation loss $36,000
Cr. Property $36,000Dr. Accumulated depreciation $20,000
Cr. Property $20,000[Question 2]
A company purchased machinery on 1 January 2022 for $200,000. The machinery has a useful life of 10 years. On 31 December 2024, after recording depreciation for the year, the machinery was revalued to $180,000.
CA @ 31 December 20X4: $140,000
Dr. Accumulated depreciation $60,000
Cr. Machinery $60,000Dr. Machinery $40,000
Cr. Revaluation surplus $40,000Are these entries are correct?
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