Question

In: Accounting

Amazonia Ltd purchased Buildings for $4 million on July 1st 2010. The estimated useful life was...

Amazonia Ltd purchased Buildings for $4 million on July 1st 2010. The estimated useful life was 20 years. The estimated residual was $800,000.

Amazonia Ltd applies the AASB 116 fair value (revaluation model) to recognise its Buildings.

On 30^th June 2014 the extract of the Balance Sheet indicated the following for Buildings.

Non-Current Asset

Buildings

Cost 4,000,000

Accumulated Depreciation (640,000)

On 30 June 2015 the following is information for Buildings

Fair Value $3,620,000

Cost to sell $100,000

Value in use $3,800,000

On 30 June 2016 the following is information for the Buildings

Fair Value $2,816,000

Cost to sell $120,000

Value in use $3,200,000

On 30 June 2017 the following is information for the Buildings

Fair Value $3,140,000

Cost to sell $140,000

Value in use $3,400,000

Required

Prepare all general journal entries for the Buildings for the year ended 30 June 2015. Show all workings and justify your answer.

Prepare all general journal entries for the Buildings for the year ended 30 June 2016. Show all workings and justify your answer.

Prepare all general journal entries for the Buildings for the year ended 30 June 2017. Show all workings and justify your answer

Expert Solution

ekkarill92 answered 1 year ago

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