# Question Solved1 AnswerAn entity purchased peoperty for \$ 8 million on 1 July 20X3 . The land element of the purchase was \$ 2 million . The expected life of the building was 50 years and its residual value nil . On 30 June 20X5 the property was revalued to \$ 10million , of which the land element was \$ 3 million and the buildings \$ 7 million . On 30 June 20X7 , the property was sold for \$ 9.2 million . a ) Calculate gain / loss on revaluation b ) Show double entry to record gain / loss calculated above c ) Calculate gain loss on disposal

An entity purchased peoperty for \$ 8 million on 1 July 20X3 . The land element of the purchase was \$ 2 million . The expected life of the building was 50 years and its residual value nil . On 30 June 20X5 the property was revalued to \$ 10million , of which the land element was \$ 3 million and the buildings \$ 7 million . On 30 June 20X7 , the property was sold for \$ 9.2 million .

a ) Calculate gain / loss on revaluation

b ) Show double entry to record gain / loss calculated above

c ) Calculate gain loss on disposal

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