Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment
$$\begin{array} { | l | l | }
\hline \text { Equivalent machine } & \$ 55860 \
\hline \text { New machine } & \$ 70000 \
\hline
\end{array}$$
The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method?

Question

Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment
$$\begin{array} { | l | l | } 
\hline \text { Equivalent machine } & \$ 55860 \
\hline \text { New machine } & \$ 70000 \
\hline
\end{array}$$
 The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method?

Quizplus · Accepted Answer

The Answer of Smith & Jones Ltd owns equipment that was purchased for $56 000 and has accumulated depreciation of $14 000.The following market value information was gathered about the equipment
$$\begin{array} { | l | l | } 
\hline \text { Equivalent machine } & \$ 55860 \
\hline \text { New machine } & \$ 70000 \
\hline
\end{array}$$
 The equipment has a remaining useful life to the entity of 10 years.What are the appropriate journal entries to record the revaluation under the gross method and the net-amount method?

Smith & Jones Ltd Owns Equipment That Was Purchased for $56