Current Attempt in Progress On January 1, 2022, Flounder Corporation acquires a building at a cost of $210,000. The building is expected to have a 30-year life and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two years. On December 31, 2023, the fair value of the building is appraised at $205,800 and on December 31, 2025 its fair value is $182,000. Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do
Current Attempt in Progress On January 1, 2022, Flounder Corporation acquires a building at a cost of $210,000. The building is expected to have a 30-year life and no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two years. On December 31, 2023, the fair value of the building is appraised at $205,800 and on December 31, 2025 its fair value is $182,000. Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Current Attempt in Progress
On January 1, 2022, Flounder Corporation acquires a building at a cost of $210,000. The building is expected to have a 30-year life and
no residual value. The asset is accounted for using the proportionate revaluation method and revaluation is carried out every two
years. On December 31, 2023, the fair value of the building is appraised at $205,800 and on December 31, 2025 its fair value is
$182,000.
Prepare the appropriate journal entries for December 31, 2023 and December 31, 2025. Assume depreciation has been recorded. (Do
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