Reference no: EM132994131

Question - The balance sheet of a publishing business at 30 June 2016 showed buildings at a cost of $50 million, with accumulated depreciation of $10 million. A year later, at 30 June 2017, the balance sheet showed buildings at an independent valuation of $60 million and accumulated depreciation of nil. At 30 June 2018, the statement showed buildings at an independent valuation of $48 million and accumulated depreciation of $2.5 million.

a) To what account should any revaluation increment in the 2016/2017 financial year be credited?

b) Why is accumulated depreciation at 30 June 2017 nil?

c) Assuming no freehold land and buildings were bought or sold in the 2017/2018 financial year, make the entry to record the reduction in the value of the property.