Information About the PPE for Jeremy Inc

question 52

Essay

Information about the PPE for Jeremy Inc. is provided below. The company held the land and building to earn rental income and appropriately applied the fair value model for the land and building. Assume that the company takes a full of depreciation each year under the straight line method.
The company decided to use the building as its new head office at the beginning of year 3.
Prepare the journal entries required to record the change in use for Year 3.
$\begin{array}{|l|l|l|l|l|} \hline & \text { Purchase Price } & \begin{array}{l}\text { Fair value at the } \\\text { end of Year 1 }\end{array} & \begin{array}{l}\text { Fair value at the } \\\text { end of Year } 2\end{array} & \begin{array}{l}\text { Fair value at the } \\\text { end of Year } 3\end{array} \\\hline \text { Land } & 10 \text { million } & 12 \text { million } & 14 \text { million } & 13 \text { million } \\\hline \text { Building }-20 \text { year } & & & & \\\text { useful life } & 40 \text { million } & 45 \text { million } & 40 \text { million } & 45 \text { million } \\\hline \begin{array}{l}\text { Machinery }-5 \text { year } \\\text { useful life }\end{array} & & 4.8 \text { million } & 3.5 \text { million } & 2.7 \text { million }\\\hline\end{array}$ .

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Definitions:

Dosage

The specific amount of medication prescribed to be taken at one time or over a particular period.

Synergistic Effect

In pharmacology, an increase of effects that occurs when more than one substance is acting on the body at the same time.

Negative Symptoms

Negative symptoms refer to the absence or diminution of normal emotions or behaviors often seen in psychiatric conditions, such as reduced expression of emotions or withdrawal from social interaction.

Extrapyramidal Side Effects

Unwanted side effects of certain medications, particularly antipsychotics, affecting movement, such as tremors or rigidity.