A company bought a property four years ago on 1 January for $42,500. Since then property prices have risen substantially and the property has been revalued at $52,500.
The property was estimated as having a useful life of 20 years when it was purchased.
What is the balance on the revaluation surplus reported in the statement of financial position?
Answer
| $ | |
| Valuation | 52,500 |
| Carrying amount (42,500 x 16/20) | (34,000) |
| Revaluation surplus | 18,500 |