In the 30 June 2020 annual report of Laverton ltd, the following information was reported for buildings: Building (at cost) $260,000 Accumulated depreciation (60,000) The buildings consisted of one Building – Building A. The building was measured using the cost model and depreciated on a straight-line basis over a 10-year period. On 31 December 2020, the director of Laverton ltd decided to change the basis of measuring the building from the cost model to the revaluation model. Building A was revalued to $168,000 with an expected useful life of 5 years. As of 30 June 2021, Building A was assessed to have a fair value of $160,000 with an expected useful life of 4 years. Required: Prepare the analysis and necessary journal entries during the period 1 July 2020 to 30 June 2021 in relation to the building, note, show all workings. (Ignore tax effects and narrations are not required)
In the 30 June 2020 annual report of Laverton ltd, the following information was reported for buildings:
Building (at cost) $260,000
Accumulated depreciation (60,000)
The buildings consisted of one Building – Building A. The building was measured using the cost model and depreciated on a straight-line basis over a 10-year period.
On 31 December 2020, the director of Laverton ltd decided to change the basis of measuring the building from the cost model to the revaluation model. Building A was revalued to $168,000 with an expected useful life of 5 years.
As of 30 June 2021, Building A was assessed to have a fair value of $160,000 with an expected useful life of 4 years.
Required:
Prepare the analysis and necessary
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