AF’s property, plant, and equipment is reported at cost. The company has a policy ofnot revaluing property, plant, and equipment. Suppose AF decided to revalue its flightequipment on December 31, 2015, and that the fair value of the equipment on that datewas €10,000 million. Prepare the journal entry to record the revaluation, assuming thatthe journal entry to record annual depreciation had already been recorded. (Hint: youwill need to locate the original cost and accumulated depreciation of the equipment atthe end of the year in the appropriate disclosure note.)
AF’s property, plant, and equipment is reported at cost. The company has a policy ofnot revaluing property, plant, and equipment. Suppose AF decided to revalue its flightequipment on December 31, 2015, and that the fair value of the equipment on that datewas €10,000 million. Prepare the journal entry to record the revaluation, assuming thatthe journal entry to record annual depreciation had already been recorded. (Hint: youwill need to locate the original cost and accumulated depreciation of the equipment atthe end of the year in the appropriate disclosure note.)
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 66P
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Question
AF’s property, plant, and equipment is reported at cost. The company has a policy of
not revaluing property, plant, and equipment. Suppose AF decided to revalue its flight
equipment on December 31, 2015, and that the fair value of the equipment on that date
was €10,000 million. Prepare the
the journal entry to record annual
will need to locate the original cost and
the end of the year in the appropriate disclosure note.)
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