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Yum-Yum applies the revaluation model to land. Other than the land recently purchased in Nanaimo, Yum-Yum owns land in two other locations. Their value was assessed as follows:
Dec. 31, 20X4
Dec. 31, 20X5
Kelowna $250,000
$275,000
Coquitlam 128,000
106,000
The land in Kelowna has a revaluation surplus of $50,000 and no balance in revaluation gain/loss. The land in Coquitlam was acquired in 20X3 at a cost of $120,000 and has been revalued to its December 31, 20X4, value. No adjustments have been recorded for the land
in 20X5.
What will the journal entry be?
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