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Question - D&D Construction Ltd. is based in Maitland, Nova Scotia. The company takes on construction jobs ranging from small contracts worth just a few thousand dollars to multi-million-dollar projects. It only prepares accrual and adjusting entries at year end.
The following four significant transactions have occurred in 20X7, and may have possible yearend adjustment implications:
a) Land D&D accounts for land using the revaluation model. The company has only one parcel of land. It is recorded in the statement of financial position by D&D at $3.2 million. In 20X7, the value of the land was assessed, and found to be $3 million. No revaluation adjustments have been recorded in the past.
Required - What is the journal entry to record the change in value of the land.
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