Prepare the journal entry that reflects the revaluation

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Question - Scoop is a main "crew" in Bob the Builder and it was purchased on January 1, Year 10 for $120,000. [Please use "equipment" account for "Scoop" in your journal entry.] Bob has been depreciating Scoop on a straight-line basis over a 20-year period with zero residual value. The appraisal carried out on December, Year 13 determined that the fair value of scoop was 100800 and the appraisal carried out on December, Year 17 determined that the fair value of scoop was 68040. Bob adopts revaluation model for Scoop and he uses proportional method. Please note that (1) Bob makes the revaluation-related journal entry after he records depreciation expense as in your lecture note example and that (2) Bob does not adopt any partial-year depreciation convention Have fun! Please use "gain on revaluation", "loss on revaluation", or "revaluation surplus (OCI)" in your journal entry.

Required -

(1) Prepare the journal entry that reflects the revaluation on December, Year 13.

(2) Prepare the journal entry that reflects the revaluation on December, Year 17.

Reference no: EM132814469

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