What is the revaluation surplus on December 31, 2020?

Percentage of Accumulated Depreciation

Building (3,750,000 / 15,000,000) 25%
Machinery (1,500,000 / 3,000,000) 50%

Useful life
Building (10 years / 25%) 40 years
Machinery (10 years / 50%) 20 years

Carrying
Sound Value Amount
Land 5,000,000 2,000,000
Building (75% x 25,000,000) 18,750,000 11,250,000
Machinery (50% x 5,000,000) 2,500,000 1,500,000

What is the depreciation for the current year?

Building (18,750,000 / 30 years remaining) 625,000
Machinery (2,500,000 / 10 years remaining) 250,000
Total 875,000

What is included in the journal entry to record the revaluation on December 31, 2020?
Cost - 6/30/2020 5,000,000
Accumulated Depreciation -1,500,000
Carrying Amount - 6/30/2020 3,500,000
Depreciation - July 1 to December 31, 2020
(5,000,000 / 10 x 6/12) -250,000
Carrying Amount - 12/31/2020 3,250,000

Fair Value - 12/31/2020 4,550,000

Carrying Amount - 12/31/2020 -3,250,000
Revaluation Surplus - 12/31/2020 1,300,000

Replacement
Cost Cost
Equipment (4,550,000 / 65%) 5,000,000 7,000,000
Accumulated Depreciation - 35% -1,750,000 -2,450,000
Depreciable Amount 3,250,000 4,550,000

Equipment 2,000,000
Accumulated Depreciation
Revaluation Surplus

What is the depreciation for 2021?

Depreciation for 2021 (4,550,000 / 5) 910,000

What is the depreciation for 2020?

Depreciation for 2020 (5,000,000 / 10) 500,000

What is the revaluation surplus on December 31, 2021?

Revaluation Surplus - 12/31/2020 1,300,000
Annual Realization (1,300,000 / 5) -260,000
Revaluation Surplus - 12/31/2021 1,040,000
 What is the revaluation surplus on January 1, 2020?
Revaluation Surplus - 1/1/2020 11,500,000
Realizations in 2020
Building (7,500,000 / 30) -250,000
Machinery (1,000,000 / 10) -100,000
Revaluation Surplus - 12/31/2020 11,150,000

Revaluation
Surplus
3,000,000
7,500,000
1,000,000
11,500,000

Appreciation
2,000,000
-700,000
1,300,000

700,000
1,300,000