E. Mattamax Ltd owns two buildings acquired in 2016 for the purpose of future development....
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E. Mattamax Ltd owns two buildings acquired in 2016 for the purpose of future development. Building A cost $290,000 and Building B cost $330,000. Valuations of the blocks are undertaken by an independent valuer on 30th June 2018 and 2020. The assessed values are as follows: Building A Building B 2018 valuation $ 2020 valuation $ 270,000 310,000 350,000 320,000 (a) Provide the journal entries for the revaluations that were undertaken in 2018 and 2019 for the buildings. 6 marks (b) What might the economic consequence of asset revaluations be for the business? 2 marks
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