Reference no: EM133077317

Question - To expand the factory, on January 2, 2020, PT Nugraha purchased land and a new building on a lumpsum basis by spending IDR 550,000,000,- . In addition, PT Nugraha also paid a fee of IDR 50,000,000 as administrative costs of buying and selling these assets. The market price of each of these assets at the time of the transaction is as follows:

Land IDR 500,000,000,-

Building IDR 300,000,000,-

The building will be depreciated using the number of years method, with an estimated useful life of 10 years and no salvage value.

Required -

a. Calculate the acquisition value of Land and Buildings and make a journal when they are acquired.

b. Make a journal to record the depreciation of the building in December 2020 with the necessary calculations, and make a program (schedule) that shows the amount of depreciation of the building each year.