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Carter vacated an office building and let it out to a third party on 30 june 2008. The building had an original cost of $900k on 1st jan 2000 and was depreciated over 50 years. It was judged to have a fair value on 30 june 2008 of 950k. At the year end date of 31 dec 2008 the fair value of the building was estimated at 1.2million.
Carter uses the fair value model for investment property.
Whats the amount shown in revaluation surplus at 31dec 2008 of this building?The answer is $203k
My question to u is the CV on 30 june 2008 is $747k and to fair value on that date, the difference is $203k okay and again its revalued to 1.2m at the yr end date, the increase of 250+ 203 should be the answer?Gains on investment properties where fair value model is adopted go through statement of profit or loss
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