Required information [The following information applies to the questions displayed below.] Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased equipment for $432,000 The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower chooses to revalue the equipment to its fair value of $396.000. 4a. Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2024 is $351,000. 4b. Assume that the fair value of the equipment at the end of 2024 is $351.000. Prepare the journal entry to record the revaluation of the equipment. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2024 is $351,000. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Equipment Accumulated depreciation Book value Before revaluation Conversion factor After revaluation Req 4B > D
Required information [The following information applies to the questions displayed below.] Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased equipment for $432,000 The equipment is expected to have a six-year useful life with no residual value. Dower uses the straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower chooses to revalue the equipment to its fair value of $396.000. 4a. Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2024 is $351,000. 4b. Assume that the fair value of the equipment at the end of 2024 is $351.000. Prepare the journal entry to record the revaluation of the equipment. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of the equipment at the end of 2024 is $351,000. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Equipment Accumulated depreciation Book value Before revaluation Conversion factor After revaluation Req 4B > D
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11P
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Question
![Required information
[The following information applies to the questions displayed below.]
Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased
equipment for $432,000 The equipment is expected to have a six-year useful life with no residual value. Dower uses the
straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower
chooses to revalue the equipment to its fair value of $396.000.
4a. Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of
the equipment at the end of 2024 is $351,000.
4b. Assume that the fair value of the equipment at the end of 2024 is $351.000. Prepare the journal entry to record the revaluation of
the equipment.
Complete this question by entering your answers in the tabs below.
Req 4A
Req 4B
Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair
value of the equipment at the end of 2024 is $351,000.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
Equipment
Accumulated depreciation
Book value
Before revaluation
Conversion factor
After
revaluation
Req 4B >
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06728ce9-322a-4c76-b5a7-ad26fd759ab0%2F28ba48d1-d81b-45b4-a8f3-eb47d6baf118%2Fu07vynr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Dower Corporation prepares its financial statements according to IFRS. On March 31, 2024, the company purchased
equipment for $432,000 The equipment is expected to have a six-year useful life with no residual value. Dower uses the
straight-line depreciation method for all equipment. On December 31, 2024, the end of the company's fiscal year, Dower
chooses to revalue the equipment to its fair value of $396.000.
4a. Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair value of
the equipment at the end of 2024 is $351,000.
4b. Assume that the fair value of the equipment at the end of 2024 is $351.000. Prepare the journal entry to record the revaluation of
the equipment.
Complete this question by entering your answers in the tabs below.
Req 4A
Req 4B
Assume no revaluation surplus exists before this entry. Calculate the revaluation of the equipment assuming that the fair
value of the equipment at the end of 2024 is $351,000.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
Equipment
Accumulated depreciation
Book value
Before revaluation
Conversion factor
After
revaluation
Req 4B >
D
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