Q1. An entity purchases a building on December 31, 20×2 at a cost of \$10,000,000. On December 31, 20×3, they purchase another building at a cost of \$6,000,000. The entity opts to use the revaluation model (the gross carrying amount method) for their buildings. Buildings are depreciated on a straight line basis over 40 years with no residual value. Fair value data on each building is as follows:December 31, 20×4 December 31, 20×6 December 31, 20x8Building 1\$9,800,000 9,100,000 -Building 1\$5,900,000 5,400,000 5,300,000On October 31, 20×7, Building 1 is sold for \$8,950,000.Required –(a) Prepare all journal entries for 20×2 – 20×7 for Building 1.(b) Prepare all journal entries for 20×3 – 20×8 for Building 2.

Q1. An entity purchases a building on December 31, 20×2 at a cost of \$10,000,000. On December 31, 20×3, they purchase another building at a cost of \$6,000,000. The entity opts to use the revaluation model (the gross carrying amount method) for their buildings. Buildings are depreciated on a straight line basis over 40 years with no residual value. Fair value data on each building is as follows:December 31, 20×4 December 31, 20×6 December 31, 20x8Building 1\$9,800,000 9,100,000 -Building 1\$5,900,000 5,400,000 5,300,000On October 31, 20×7, Building 1 is sold for \$8,950,000.Required –(a) Prepare all journal entries for 20×2 – 20×7 for Building 1.(b) Prepare all journal entries for 20×3 – 20×8 for Building 2.

Q1. An entity purchases a building on December 31, 20×2 at a cost of \$10,000,000. On December 31, 20×3, they purchase another building at a cost of \$6,000,000. The entity opts to use the revaluation model (the gross carrying amount method) for their buildings. Buildings are depreciated on a straight line basis over 40 years with no residual value. Fair value data on each building is as follows:December 31, 20×4 December 31, 20×6 December 31, 20x8Building 1\$9,800,000 9,100,000 -Building 1\$5,900,000 5,400,000 5,300,000On October 31, 20×7, Building 1 is sold for \$8,950,000.Required –(a) Prepare all journal entries for 20×2 – 20×7 for Building 1.(b) Prepare all journal entries for 20×3 – 20×8 for Building 2.

Q1. An entity purchases a building on December 31, 20×2 at a cost of \$10,000,000. On December 31, 20×3, they purchase another building at a cost of \$6,000,000. The entity opts to use the revaluation model (the gross carrying amount method) for their buildings. Buildings are depreciated on a straight line basis over 40 years with no residual value. Fair value data on each building is as follows:December 31, 20×4 December 31, 20×6 December 31, 20x8Building 1\$9,800,000 9,100,000 -Building 1\$5,900,000 5,400,000 5,300,000On October 31, 20×7, Building 1 is sold for \$8,950,000.Required –(a) Prepare all journal entries for 20×2 – 20×7 for Building 1.(b) Prepare all journal entries for 20×3 – 20×8 for Building 2.

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