Reference no: EM133198243

State whether the following assets may be revalued. Prepare journal entries for any revaluations permitted by accounting standards. Assume that each item listed below represents a separate class of assets.

a. A company has developed a masthead for its newspaper to the point where it is a very valuable asset. Although the masthead is not currently recognised management believes it could be sold for at least $3 million.

b. A company purchased a publishing title two years ago for $1.2 million when another publisher went into liquidation. The book has been very successful and management believes that it could probably sell for $1.5 million if ever they put it on the market.

c. A company acquired a franchise for an ice-cream stand at a beach at a cost of $100,000. There is great demand for this type of franchise as evidenced by recent sales of equivalent franchises at other beaches. The current market price for such a franchise is $200,000