On 28 April 20X2, Peele Realty purchased land and building for $5.25 million and $3.39...
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Accounting
On April X Peele Realty purchased land and building for $ million and $ million, respectively. The company uses the revaluation model for the land and building. Assume that the land is revalued annually. The building is revalued every two years.
The fair value of the land at the end of XX and X was $ million, $ million and $ million. The fair value of the building at the end of X was $ million. The building is amortized on a straightline basis and has a year useful life. Peele takes a full year of depreciation in the year acquired.
Required:
Prepare the journal entries under the revaluation model for the land in XX and XIf no entry is required for a transactionevent select No journal entry required" in the first account field.
Prepare the journal entries under the revaluation model for the building in X and Xthe year X has no revaluation per the above question, but does require recording of depreciation expense using:
The proportionate method
The elimination method
If no entry is required for a transactionevent select No journal entry required" in the first account field.
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