ACC 304 Week 5 Midterm Part 1( Set 3)
1) Tongas Company applies revaluation accounting to plant assets with a carrying value of $ 1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $ 1,500,000.
The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a
2) Tongas Company applies revaluation accounting to plant assets with a carrying value of $ 1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At