Please make journal entries based on the given information (under Canadian accou

Question

Please make journal entries based on the given information (under Canadian accounting principles), and explain what is Gross carrying amount approach.

Certified Management Accountants Adenueeaneat Revaluation Example 2 depreciable asset costing $600,000 is purchased on January 2, 20x4. The residual value of the asset is S100,000 and the asset's useful life is 10 years. The straight-line method is used. The asset is revalued every two years as tollows: ro $530,000 $400,000 $420,000 December 31, 20x5 December 31, 20x7 January 1,20x8 sold

Explanation / Answer

Journal Entries :

Year Detail amount $ Carrying amount $ 1/2/04 Purchase 600000 12/31/04 dep -50000 550000 12/31/05 dep -50000 500000 revaluation +30000 530000 12/31/06 dep -50000 480000 12/31/07 dep -50000 430000 revaluation -30000 400000 1/1/08 sale -420000 -20000

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