Lanca Corp, based in the US, prepares US GAAP consolidated financial statements. The company has asked you to determine the adjustments needed to convert the 2015 US GAAP financial statements to a set of IFRS financial statements. For each item below indicate the adjusting entry needed; if no entry is needed enter "none” as your answer.
Lanca acquired a building costing $2,750,000 on January 1, 2014. The useful life of the building is 25 years and the salvage (residual) value is $250,000. Lanca uses straight-line depreciation. At the beginning of 2015, the building was appraised and determined to have a fair value of $3,250,000. There is no change in estimated useful life or salvage (residual) value. In a switch to IFRS the company would use the revaluation model in IAS 16 to determine the carrying value of property, plant, and equipment subsequent to acquisition.