In the first year of business, Newport Ltd purchased land for $5 million. In the...
80.2K
Verified Solution
Link Copied!
Question
Accounting
In the first year of business, Newport Ltd purchased land for $5 million. In the second year, a reputable, independent property valuer's report shows that the value of the land is estimated at $2 million. In the third year, the value of the land is estimated at $6 million. Newport Ltd uses the revaluation method. What would be the journal entry to record this revaluation in the third year?
DR Land 4m; CR Gain on revaluation 3m; CR Revaluation surplus 1m
DR Land 4m; CR Gain on revaluation 1m; CR Revaluation surplus 3m
Dr Land 4m; CR Gain on revaluation 2m; CR Revaluation surplus 2m
Dr Land 4m; CR Gain on revaluation 4m
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
