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What would be the amount of fqm depreciation

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Reference no: EM132492566

IAS 16 allow companies to use either a cost model or revaluation model to value its assets. At December 31, 2017, the end of its first year of operations, FQM chose to use the revaluation model allowed under IAS 16. On this date the ledger showed Equipment of $11,250 and Accumulated Depreciation-Equipment $2,250

Required

Question 1. If Independent valuators determine that the equipment has a fair value of $9,900. Show the journal entry for the revaluation.

Question 2. Using your answer from part (a), what would be the amount of FQM 2018 depreciation? If the company uses the declining balance method and the equipment has a 4-year remaining life, and no residual value.

Question 3. At the end of 2019 the independent valuators determine that the equipment has a fair value of $4,000. Show the journal entry for the revision in fair value

Reference no: EM132492566

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