REVALUATION DEPRECIABLE ASSETS

Chill Company uses revaluation accounting for a class of equipment it uses in its golf club refu
The equipment was purchased on January 2, 2015, for $1,000,000; it has a 5-year useful life w

Chill has the following information related to the equipment.

Date Fair Value
January 2, 2015 $1,000,000
December 31, 2015 $ 780,000
December 31, 2016 $ 650,000
December 31, 2017 $ 420,000
December 31, 2018 $ 120,000
December 31, 2019 $ 12,000

At January 5, 2020, the equipment has been sold for $10.000

Instructions :
1. Prepare the revaluation table of all the information and transactions above!
2. Prepare the journal of all the information and transactions above!
 nt it uses in its golf club refurbishing business.
0; it has a 5-year useful life with no residual value. Depreciated with straight line method.

nd transactions above!
tions above!
ht line method.
Date Item Account Name Debit

Depreciation Dep. Exp $ 200,000

Accum Dep
2015 Loss In Imparement Dep. Exp $ 200,000
unrealised gain on revaluation of FA (OCI) $ 20,000
equipment
Depreciation Dep. Exp $ 195,000
Accum Dep
neutralize RE AOCI $ 5,000
RE
2016
Revaluation Accum Dep $ 195,000
equipment
Recovery Impairment
unrealised gain on revaluation of FA (OCI)
Depreciation Dep. Exp $ 216,667
Accum Dep
neutralize RE AOCI $ 16,667
2017 RE
Revaluation Accum Dep $ 216,667
unrealised gain on revaluation of FA (OCI $ 13,333
equipment
Depreciation Dep. Exp $ 210,000
Accum Dep
neutralize RE AOCI $ 10,000
RE
2018
Revaluation Unrealized Gain on Revaluation Equipmen $ 10,000
Loss on Impairment $ 80,000
Accum Dep $ 210,000
Equipment
Depreciation Dep. Exp $ 120,000
Accum Dep
neutralize RE AOCI $ 80,000
RE
2019
Accumulated Depreciation $ 120,000
Unrealized Gain on Revaluation Equipmen $ 68,000
Recovery Impairment
Equipment
sales of FA cash $ 10,000
loss on sales of FA $ 2,000
equipment
2020

Transfer from AOCI AOCI $ 12,000

Closing RE
 Equipment
Credit Date Item
Fair Value
January 2, 2015 Opening Balance $ 1,000,000
$ 200,000 December 31, 2015 Depreciation $ -
December 31, 2015 Loss In Imparement $ -220,000
Amount $ 780,000
$ 220,000
January 2, 2016 Opening Balance $ 780,000
$ 195,000 December 31, 2016 Depreciation $ -
December 31, 2016 neutralize RE $ -
$ 5,000 December 31, 2016 Revaluation $ -130,000
Amount $ 650,000
$ 130,000
$ 20,000 January 2, 2017 Opening Balance $ 650,000
$ 45,000 December 31, 2017 Depreciation
December 31, 2017 neutralize RE
$ 216,667 December 31, 2017 Revaluation $ -230,000
Amount $ 420,000
$ 16,667
January 2, 2018 Opening Balance $ 420,000
December 31, 2018 Depreciation $ -
$ 230,000 December 31, 2018 neutralize RE
December 31, 2018 Revaluation $ -300,000
$ 210,000 Amount $ 120,000

$ 10,000 January 2, 2019 Opening Balance $ 120,000

December 31, 2019 Depreciation $ -
December 31, 2019 neutralize RE $ -
December 31, 2019 Revaluation $ -108,000
$ -300,000 Amount $ 12,000

$ 120,000 2020 Sales

January 5, 2020 Beginning Balance $ 12,000
$ 80,000 January 5, 2020 Sales Fixed Assets $ -12,000
January 5, 2020 Closing AOCI
Amount $ -
$ 80,000
$ 108,000

$ 12,000

$ 12,000
 Accum. Retained Date
AOCI
Depr Earnings January 2, 2015
$ - $ - $ - December 31, 2015
$ 200,000 $ -200,000 $ - December 31, 2016
$ -200,000 $ -20,000 $ - December 31, 2017
$ - $ -220,000 $ - December 31, 2018
December 31, 2019
$ - $ -220,000 $ - FV $ 650,000
$ 195,000 $ -195,000 $ - NBV $ 585,000
$ - $ -5,000 $ 5,000 Gain $ 65,000
$ -195,000 $ 20,000 $ 45,000
$ 600,000 $ -400,000 $ 50,000

$ - $ -400,000 $ 50,000 FV $ 420,000

$ 216,667 $ -216,667 NBV $ 433,333
$ 16,667 $ -16,667 Gain $ -13,333
$ -216,667 $ -13,333
$ - $ -600,000 $ 20,000
FV $ 120,000
$ - $ -600,000 $ 20,000 NBV $ 210,000
$ 210,000 $ -210,000 $ - Gain $ -90,000
$ - $ 10,000 $ -10,000
$ -210,000 $ -80,000 $ -10,000
$ - $ -880,000 $ -
FV $ 12,000
$ - $ -880,000 $ - NBV $ -
$ 120,000 $ -120,000 $ - Gain $ 12,000
$ - $ 80,000 $ 80,000
$ -120,000 $ -80,000 $ -68,000
$ - $ -1,000,000 $ 12,000

$ - $ -1,000,000 $ 12,000
$ - $ -2,000 $ -
$ 12,000 $ -12,000
$ - $ -990,000 $ -
 FV Book Value Method : Straight Line
$ 1,000,000 $1,000,000 UseFull Life : 5 Years
$ 780,000 $ 800,000 A year Depreciation 20%
$ 650,000 $ 600,000 1.000.000 / 5 $ 200,000
$ 420,000 $ 400,000 2015 $ 200,000
$ 120,000 $ 200,000 2016 $ 400,000
$ 12,000 $ - 2017 $ 600,000
2018 $ 800,000
2019 $ 1,000,000