Anderson Pty Ltd is an Australian diversified
Question # 00473287
Posted By:
Updated on: 01/30/2017 07:10 AM Due on: 01/30/2017
Investments in companies | Carrying Value ($) | Current fair value ($) |
?Property, plant and equipment | ||
?Factory (NSW) | ||
?Land | 100 000 | 150 000 |
?Buildings | ||
?– Cost | 70 000 | 80 000 |
?– Accumulated depreciation | (20 000) | – |
Factory (Qld) | ||
?Land | 150 000 | 120 000 |
?Buildings | ||
?– Cost | 125 000 | 70 000 |
?– Accumulated depreciation | (45 000) | – |
Mr Anderson informs you that the directors intend to revalue the property, plant and equipment during the year. The company has not revalued any assets in the past.
Required
(a) How would you account for the revaluation of the above assets?
(b) What would the relevant journal entries be?
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Rating:
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Solution: Anderson Pty Ltd is an Australian diversified