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Callum owns land and buildings which cost $250,000 including $75,000 for the land on 1 November 20X6. The buildings had a useful life of 40 years. Callum revalued the land and buildings to their current value of $500,000 on 1 November 20X9. The valuation included $140,000 for the land.
There was no change in the remaining useful life of the buildings after revaluation.
Callum’s financial year ends on 31 October and depreciation is provided for using the straight-line method.
What should the balance on the revaluation surplus be immediately after the revaluation?$268,750
$236,875
$263,125
$333,750
Did you not read my reply to your previous post?
This forum is not a place to expect to get answers to test questions.
If you have been set this as a test question, then wee do not do your homework for you.
Otherwise, you should be using a Revision Kit from one of the ACCA approved publishers. They contain answers and explanations, and you should ask about whatever it is in the answer that you are not clear about.
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