What will the reported amount in the transaction look like

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Reference no: EM133342281

Case: In Jan. 2019, AVC Comp. purchased a new retail structure for $300.

The retail structure has a physical life of 40 years, after which it will have no salvage value, but AVC Comp. expects to use it for only 20 years, at which point it will still have a value of $100.

AVC comp. accounts for such assets using the double (or 200%) declining balance method. All entries were correctly made in 2019. However, no entry was made regarding this building in 2020.

Question 1: What will the reported amount in the transaction look like in FSET?

Question 2: If the total Asset in B/S is "$45678," what will be the new reported amount?

Question 3: If the total Share Holder Equity in B/S is "$5678," what will be the new reported amount?

Reference no: EM133342281

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