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Moon Inc., a publicly listed company, has a building with an initial cost of $400,000. At...

Moon Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000. Prepare the journal entries to revalue the building under the revaluation model using:


the asset adjustment (direct) method


the proportionate method

Use the information from 1 above. On January 5, 2021, Moon sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used


the cost model


the revaluation model using the asset adjustment method


the revaluation model using the proportionate method.

Would a potential investor prefer Moon Inc. use the asset adjustment method or the proportionate method to apply the revaluation model, why?

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ekkarill92 answered 1 year ago
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