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CBBB Company uses the revaluation model for its buildings. The last revaluation of the buildings to their fair value took place on December 31, 2018. CBBB provided you with the following information taken from its books on December 31, 2020:
Building $980,000Accumulated depreciation, recorded up to December 31, 2019. 75,000Annual depreciation 75,000Residual value 80,000Remaining useful life on December 31, 2018, date of last revaluation 12 yearsAccumulated OCI- revaluation of building 12,000
Required-
Problem 1- Prepare all the journal entries related to the depreciation and revaluation of the building in 2020.
Problem 2- Calculate the depreciation expense to be recorded on December 31, 2021.
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