Abc ltd is in the business of providing management

Reference no: EM13586724

ABC Ltd is in the business of providing management consultation services in Parnell area. ABC bought a property on 1 July 2012 for a cost of $1,500,000. The property consists of land and building. The value of the land is $800,000 at time of purchase. The property is used as offices and seminar rooms. ABC renovates the property in order to make it suitable for its operation. The cost of renovation is $80,000. The renovation is completed in 2 months after the purchase. ABC has a balance date of 30 June.

1. Determine the cost of the property to be recorded in the accounts.

2. Assume ABC depreciates the building part of the property on a straight-line basis. Depreciation is $40,000 each year for the building. The company depreciates its PPE to the nearest month. On 1 July 2013, the property is revalued to $1,700,000, of which the land portion appreciated by $100,000. Prepare journal entries to reflect the revaluation for both land and building of the property.

Reference no: EM13586724

Questions Cloud

How would you explain to a member of your board of : how would you explain to a member of your board of directors the difference between the companys income tax expense and

Oxford engineering manufactures small engines the engines : oxford engineering manufactures small engines. the engines are sold to manufacturers who install them in such products

What is a pension plan as used in a firm and related to : what is a pension plan as used in a firm and related to employee compensation? what is the difference between a defined

Rupert wanted to give his son and daughter a gift of 10000 : 1 during the current year mr. french received state unemployment benefits of 2500 and 700 of supplemental unemployment

Abc ltd is in the business of providing management : abc ltd is in the business of providing management consultation services in parnell area. abc bought a property on 1

What is the cash conversion cycle for your company in each : here are a few questions. they are asking about the company of mcdonalds please search and answer every question below

The units in process at the end of the month are 100 : the units in process at the end of the month are 100 percent coomplete with respect to materials and 50 percent

James company has two production departments called mixing : james company has two production departments called mixing and finishing. the maintenance department serves both

If you start 090 m behind the cockroach with an initial : large cockroaches can run as fast as 1.50 ms in short bursts. suppose you turn on the light in a cheap motel and see

User Account

All Pages