ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 177

no commercial substance and additional cash is paid.
=======================================

ACC 304 Week 5 Midterm Part 1 (Set 3)
For more course tutorials visit

www.tutorialrank.com
1) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.

The journal entry to adjust the plant assets to fair value and record
revaluation surplus in year one will include a

2) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At