Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. axe ltd. purchased a building worth tshs. 200,000

Axe Ltd. purchased a building worth Tshs. 200,000 on January 1, 2008. The building has a...

50.1K

Verified Solution

Question

Accounting

Axe Ltd. purchased a building worth Tshs. 200,000 on January 1,2008. The building has a useful life of 20 years and the companyuses straight line method. On December 31, 2010 the company intendsto switch to revaluation model and carries out a revaluationexercise which estimates the fair value of the building to beTshs.190,000 as at December 31, 2010. On December 31, 2012 Axe Ltd.revalues the building again to find out that the fair value shouldbe Tshs.140,000. The expected useful life has remainedunchanged
Required: Calculate
a)Revaluation surplus amounts and show the Journal to record therevaluations
b)Depreciation charge for each period
c)Excess depreciation to be transferredand show the Journal torecord the transfer

Answer & Explanation Solved by verified expert
4.4 Ratings (880 Votes)
Please give positive ratings    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

18 Samantha thinks that the equation x 4 y 3 25 is equivalent to the...

Chemistry
1.2K views

Calculate the expected pH when 0.5 mL of 0.1 M HCL is added to 30.0 mL...

Biology
1.2K views

Which of the following most assisted the Spaniards' conquest of the Aztecs in the sixteenth...

Physics
1.2K views

A potential difference of 20 kV is applied across an X ray tube Find the...

Physics
1.2K views

Photoemission by Black Body Radiation A black body emits peak spectral intensity at 9000 On...

Basic Math
1.2K views

Find a function that models the simple harmonic motion having the given properties Assume that...

Basic Math
1.2K views

The function g(2) is shown in the table below. x ...

Accounting
1.2K views

The Gilster Company, a machine tooling firm, has several plants. One plant, located...

Accounting
1.2K views

The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can...

Accounting
1.2K views

Current information for the Healey Company follows: 30 Beginning raw materials inventory Raw material purchases...

Accounting
1.2K views

Required information 2.00 points Each visor requires a total of $4.00 in direct materials that...

Finance
1.2K views

Homework: Chapter 5 Homework HW Score: 75%, 6 of 7 of 7 (5 complete) Score:...