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Prepare all journal entries related to the sale

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Question - On January 1, 2020, Algo Ltd. acquires a building at a cost of $460,000. The building is expected to have a 20-year life and no residual value. The asset is accounted for under the revaluation model, using the asset adjustment method. Revaluations are carried out every three years. On December 31, 2022, the fair value of the building is appraised at $410,000, and on December 31, 2025, its fair value is $300,000. Algo Ltd. applies IFRS. Assume any surplus that may exist is not transferred as the asset is being used, and that the building is expected to deliver economic benefits equally over its useful life. Note: Round all journal entries to the nearest dollar.

Required -

a. Prepare all journal entries for 2020.

b. Prepare all journal entries related to the revaluation for 2022.

c. Prepare all journal entries related to the revaluation for 2025.

d. Assume that instead of holding onto the building, Algo sold it on January 1, 2023 for $400,000. Prepare all journal entries related to the sale.

Reference no: EM133076203

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