Revaluation
Revaluation
Revaluation
date of revaluation:
Replacement
Cost cost
Machinery 7,500,000 10,500,000
Accumulated depreciation 1,500,000
Age of asset (years) 6
Required:
1. Appreciation or revaluation increase
2. Carrying amount
3. Depreciated Replacement cost
4. Revaluation surplus
5. What is the original useful life of the asset?
6. Prepare the journal entry to record the revaluation (use proportional
approach)
ge of Asset = 30-6 = 24
tion on cost (6,000,000/24) + Depreciation on appreciation (2,400,000/24) = Depreciation on Revalued Amount = 250,000 + 100,000 = 3
400,000 or 10,500,000 x 80% = 8,400,000