How much is the revaluation surplus on date of revaluation

Assignment Help Financial Accounting
Reference no: EM132956396

The account balances relating to PPE of Cycle Company on January 1, 2009 are as follows:

Land 2,000,000

Building 15,000,000

Accumulated Depreciation - Building 3,750,000

Machinery 1,500,000

Assets have been carried at cost since their acquisition. All assets were acquired on January 1, 2004. The straight line method is used. On January 1, 2009, the entity wishes to show PPE at revalued amount.

On that date, competent appraisers submitted the following Replacement Costs:

Land 5,000,000

Building 25,000,000

Machinery 5,000,000

Problem 1: How much is the revaluation surplus on date of revaluation?

Reference no: EM132956396

Questions Cloud

Prepare a t-account for michael lucas capital : Create the company's closing entries. Include explanations. Prepare a T-account for Michael Lucas, Capital. What is the ending Capital balance at June
Calculate Bette BTCFs and ATCFs for each of these years : Bette also has selling expenses of $6,000 and is in the 15 percent tax bracket. Calculate Bette's BTCFs and ATCFs for each of these 3 years
Find what is the entry to record the sale of the asset : Prepare the entry for subsequent depreciation. If equipment was sold for P8,000,000 one year after revaluation, what is entry to record the sale of the asset?
Effect of the process impact financial value : What would be the effect of the process impact financial value creation on the overall value of the firm? Why? How?
How much is the revaluation surplus on date of revaluation : How much is the revaluation surplus on date of revaluation? Assets have been carried at cost since acquisition. All assets were acquired on January 1, 2004.
Why consult with the managers in the organisation : 1.What things might drive change in a business organisation and how will you identify the need for change?
Why is a communication or education plan necessary : 1.Why is a communication or education plan necessary and with whom should you consult when developing the plan?
Importance of good corporate and tax planning : What is the importance of good corporate and tax planning for a business group? Please elaborate in 2 to 3 paragraphs.
Find how much shall be credited to the inventory account : An entity has determined that its fine China Division is cash generating unit. The entity calculated value, How much shall be credited to the Inventory account?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd