Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 3: on 1 july 2020 big wednesday ltd acqui

Question 3: On 1 July 2020 Big Wednesday Ltd acquired land at a cost of...

70.2K

Verified Solution

Question

Accounting

image

Question 3: On 1 July 2020 Big Wednesday Ltd acquired land at a cost of $1 000 000. Big Wednesday Ltd makes the following estimates of the value of the land: Fair value ($) Net selling price ($) Value in use ($) 30 June 2021 900 000 1 050 000 950 000 30 June 2022 900 000 960 000 950 000 30 June 2023 920 000 900 000 970 000 a) Determine the recoverable amount of the land for each reporting date. b) Assume that Big Wednesday Ltd uses the cost method. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards. c) Assume that Big Wednesday Ltd revalues its land at the end of each year. For each year, calculate the carrying amount of the land. Prepare the journal entries necessary to effect any adjustments required by accounting standards

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How should the actions of the FED (such as raising interest rates) affect the economy and...

Finance
Q

What is the advantage of using an internal standard in a gas chromatography experiment?

Chemistry
Q

Calculate the cell potential for the following reaction as written at 25.00 °C, given that [Mg2...

Chemistry
Q

Find the appropriate Standars( Standard for basic safety and performance measurements) related to Blood Gas Analyzer machine

Electrical Engineering
Q

What is the purpose of the mass haul diagram? How is it used in the computation...

Civil Engineering
Q

please answer all parts thanks Annual cash flows from two competing investment...

Accounting
Q

When you start Excel, you open a file that's called a workbook. Each new workbook...

Accounting
Q

Write a paragraph about a country you want to visit. Write a topic and a...

Accounting
Q

Eastern, Inc., had net sales of $3,520,000, gross profit of $1,496,000, and operating expenses of...

Accounting
Q

Question 10 A parent provides consulting services to its wholly-owned subsidiary during the year. The...

Accounting
Q

Classify the following cash flows as either operating, investing, or financing activities (assume indirect method)

Accounting
Q

On July 1, 20X0, FEDWHY sold a truck for $10,000. The company originally paid $28,000...

Accounting