Reference no: EM133126116

Question - Steven Co. has two products: A and B. The following is information about the assembly activity in its factory:

ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022:

Residential land, at cost 2,260,000

Factory land, at valuation 2020 2,034,000

Buildings, at valuation 2020 1,808,000

Accumulated depreciation -226,000

At 30 June 2022, the balance of the revaluation surplus is $904 000, of which $678 000 relates to the factory land and $226 000 to the buildings. On this same date, independent valuations of the land and buildings are obtained. In relation to the above assets, the assessed fair values at 30 June 2022 are:

Residential land, previously recorded at cost 2,486,000

Factory land, previously revalued in 2020 1,582,000

Buildings, previously revalued in 2020 2,034,000

Required - Provide the journal entries to account for the revaluation on 30 June 2022. ABC Ltd classifies the residential land and the factory land as different classes of assets.