Along with owning the storefront shop ABC Inc. owns a warehouse located on the outskirts of the city. The company had the land and buildings appraised in December 2014.
ABC Inc. paid $212,400 for the land on which the store is located.The land was appraised four years ago in 2010 at $194,400. In 2014, the appraised value was $218,400. The appraised value of the store was unchanged. ABC Inc. accounts for land under the revaluation method.
The appraised value of the land on which the warehouse is located was unchanged. The warehouse (building) was valued on December 31,2014, at $82,600. The useful life and the salvage value of the warehouse (building) were unchanged. The following information was provided. What are the required adjusting entries?
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Life (in years)
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Cost, opening
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Accumulated revaluation / impairments to December 31, 2013
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Cost, net of revaluation /impairments, ending December 31, 2013
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Salvage value
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Accumulated depreciation to December 31, 2013
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Net book value, at December 31, 2013
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|
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Land - warehouse
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n/a
|
85,000.00
|
-
|
85,000.00
|
-
|
-
|
85,000.00
|
|
Land - store
|
n/a
|
212,400.00
|
(18,000.00)
|
194,400.00
|
-
|
-
|
194,400.00
|
|
|
297,400.00
|
(18,000.00)
|
279,400.00
|
-
|
-
|
279,400.00
|
|
|
|
|
|
|
|
|
|
Warehouse (building)
|
40
|
126,000.00
|
-
|
126,000.00
|
10,000.00
|
27,550.00
|
98,450.00
|
|
|
|
|
|
|
|
|
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Store
|
40
|
368,400.00
|
-
|
368,400.00
|
|
78,285.00
|
290,115.00
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