Wright Now Limited (WNL)was incorporated on January 1, 2020 when the sole shareholder invested $7,500,000. This is the only financing the firm needed. WNL used $1,200,000 of the funds to purchase land. WNL developed a single project from 2020-2023. Pertinent financial details of this project are set out below. At the end of 2023 the land was sold for its fair value.

\begin{array} { | l | r | r | r | r | } \text { in thousands) } & 2020 & 2021 & 2022 & 2023 \\\hline \text { Revenue - all cash } & \$ 3,100 & \$ 3,500 & \$ 2,600 & \$ 2,400 \\\hline \text { Expenses - all cash } & 2,900 & 2,900 & 2,200 & 2,300 \\\hline \text { Fair value of land, end of year } & 1,550 & 1,150 & 1,400 & 1,500 \\\hline\end{array}

Required:
Complete the following table, assuming that WNL uses the historical cost basis of measurement

\begin{array} { | l | r | r | r | r | } \hline \text { Historical cost basis (\$000's) } & \mathbf { 2 0 2 0 } & \mathbf { 2 0 2 1 } & \mathbf { 2 0 2 2 } & \mathbf { 2 0 2 3 } \\\hline \text { Revenue } & \$ 3,100 & \$ 3,500 & \$ 2,600 & \$ 2,400 \\\hline \text { Expenses } & 2,900 & 2,900 & 2,200 & 2,300 \\\hline \text { Gain on disposal of land } & & & & \\\hline \text { Net income } & & & & \\\hline \text { (= comprehensive income) } & & & & \\\hline \text { Opening retained earnings } & & & & \\\hline \text { Closing retained earnings } & & & & \\\hline & & & & \\\hline \text { Cash } & \$6,500& & & \\\hline \text { Land } &\underline{ 1,200}& & & \\\hline \text { Total assets } &\underline{\$7,700} & & & \\\hline & & & & \\\hline \text { Share capital } & \$ 7,500 & & & \\\hline \text { Retained earnings } & & & & \\\hline \text { Total shareholder's equity } & & & & \\\hline\end{array}

How Is a Revaluation Loss on Non-Current Assets Accounted For

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge