JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current replacement cost is $1,500,000. The machine, which was purchased last January 1, 2017 for $1,000,000 has a carrying value of $400,000. The entity has been consistent in depreciating its machine using the straight-line method. On September 1, 2021, the entity sold the machine for $140.000. How much is the revaluation surplus as of December 31, 2020? A. $300,000 B. $100,000 C. $200,000 D. $550,000 Can you please answer this proven by a solution?
JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current replacement cost is $1,500,000. The machine, which was purchased last January 1, 2017 for $1,000,000 has a carrying value of $400,000. The entity has been consistent in depreciating its machine using the straight-line method. On September 1, 2021, the entity sold the machine for $140.000. How much is the revaluation surplus as of December 31, 2020? A. $300,000 B. $100,000 C. $200,000 D. $550,000 Can you please answer this proven by a solution?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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JAY Inc. decided to revalue its machine on December 31, 2019, and determined that the current replacement cost is $1,500,000. The machine, which was purchased last January 1, 2017 for $1,000,000 has a carrying value of $400,000. The entity has been consistent in
A. $300,000
B. $100,000
C. $200,000
D. $550,000
Can you please answer this proven by a solution?
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