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4 Cards in this Set
- Front
- Back
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Extra depreciation on revalued asset:
If consolidation for same year as acquisition |
DR depreciation expense = (FV-CA)/(useful life)
CR accumulation depreciation |
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Extra depreciation on revalued asset:
If consolidation for years after years of acquisition (e.g. acquisition on 2011 and consolidation on 2013, years= 2) |
DR depreciation expense = (FV-CA)/(useful life)
DR retain earnings CR accumulation depreciation |
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Tax effect of Extra depreciation on revalued asset:
If consolidation for same year as acquisition |
DR DTL
CR income tax expense (Depreciation expense x 0.3) |
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Tax effect of Extra depreciation on revalued asset:
If consolidation for year after the year of acquisition (e.g. acquisition in 2012, consolidation in 2014, years = 2) |
DR DTL
CR Retain earnings (income tax expense x years) CR Income tax expense (depreciation expense x 0.3) |
