Question

In: Accounting

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had...

Jarvis Corporation owned a building with a book value of $109,000 at 12/31/24. The building had a 15-year remaining life and a revaluation surplus balance of $46,000 on that date. The company sold the building on 1/1/25 for $182,000. What is the effect of the sale on OCI per IFRS?

Select one:

a. $119,000

b. $182,000

c. $27,000

d. $46,000

e. $73,000

Solutions

Expert Solution

Book Value as on 31-12-24 = 109000

Revaluation surplus = 46000

Value of building as on 1-1-25 = 109000+46000 =155000

Selling price as on 1-1-25 = 182000

Profit on Sale on Other Comprehensive Income (OCI) =182000-155000 = 27000


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