User Account

All Pages

What happens if the structure increases in value

Assignment Help Other Subject
Reference no: EM132779908

Question: Aden Motels Inc. owns a motel that it had purchased on January 1, 2020 for $1.5 Million cash and is accounted for in a separate account, classified as "Structures." The company is using the revaluation model to account for its structures and revalues them every three years. Aden uses straight-line depreciation over the asset's 15-year useful life with no residual value.

The asset's fair values were as follows:

Dec 31, 2022: $1,450,000.

Instructions: a. Assuming Aden uses the asset adjustment (elimination) method for revaluation, prepare all required journal entries for 2020, 2021, 2022 and 2023.

b. Assume instead that the value of the structure was $1,000,000 at the end of 2022 and there is a credit balance of 150,000 in the revaluation surplus account, record the journal entry for the revaluation and the 2023 depreciation. What happens if the structure increases in value at the next revaluation date?

Reference no: EM132779908

Questions Cloud

Find out holding period return on investment : Nine months ago, you bought 500 shares of a mutual fund at an offering price of $28 per share. The fund charges a front-end load of 3.5 percent
How much money will be in the account at the end : How much money will be in the account at the end of that time period? For the next 4 years, you decide to place $4,990 in equal year-end deposits
Accessing the financial landscape of a company mean : What does accessing the financial landscape of a company mean?
What amount of revenue is recognized on the contract : What amount of revenue is recognized on the contract in 20x1? On July 1, 20x1, Contractor Co. enters into a contract with a customer for the construction
What happens if the structure increases in value : Aden Motels Inc. owns a motel that it had purchased on January 1, 2020 for $1.5 Million cash and is accounted for in a separate account, classified.
Calculate? caraway stockholders equity : The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor
How much is the cumulative catch-up adjustment to revenue : How much is the cumulative catch-up adjustment to revenue recognized on the date of contract modification? (round-off percentage of completion)
What did the organization do really well : How did what you see in practice compare to what you learned from your readings and discussions? What were the similarities and differences?
What was lance? murdock rate of? return : Lance Murdock purchased a wooden statue of a Conquistador for $ 7,500 to put in his home office 7years ago. Lance has recently? married, and his home office

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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