Maple Inc. owns equipment that it purchased on January 1, 2018
for $4 Million.
The following additional information is available:
Depreciation: 10-year useful life, straight line basis, no
residual.
Dec 31, 2018 – Book value (after recording 2018 depreciation):
$3,600,000
Dec 31, 2018 – Fair value: $4,500,000
Dec 31, 2019 – Fair value $3,000,000
The company uses the revaluation model (asset adjustment method)
to account for its property, plant and equipment.
Instructions
Assuming the entry for the current year's depreciation...