Exam 10: Applications of Fair Value to Non-Current Assets

Grover Inc wishes to use the revaluation model for this property: The fair value for the property is $100,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the "other comprehensive income" account if Grover chooses to use the proportional method to record the revaluation?

Information about the PPE for Jeffery Inc. is provided below. Determine the balance sheet presentation under the cost and fair value model for each year. Ignore the impact of income taxes and assume that a full year depreciation is taken each year using the straight-line method.

Smith Inc wishes to use the revaluation model for this property: The fair value for the property is $150,000. What amount would be booked to the "accumulated depreciation" account if Smith chooses to use the proportional method to record the revaluation?

Which of the following is correct with respect to when the impairment test must be performed?

When is a "disposal group" classified as held for sale?

Which statement is not correct?

Based on the following information, what is the impairment booked at December 31, 2012?

Wilson Inc wishes to use the revaluation model for this property: The fair value for the property is $20,000. What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?

Which is correct with respect to the accounting treatment under the cost or revaluation model?

Which of the following is correct with respect to the "fair value model"?

Which statement is correct about using the "fair value less point of sale costs" approach for biological assets?

Company Twelve purchased land for $900,000 some years ago. Fair value was $800,000 at the beginning of this year and $1,000,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

Company One purchased land for $900,000 some years ago. Fair value was $450,000 at the beginning of this year and $340,000 at the end of this year. Prepare the journal entry to record this year's revaluation adjustment.

Based on the following information, what is the net amount that this equipment should be reported at in the balance sheet at December 31, 2012?

How is revaluation of non-current assets accounted for?

What is a "discontinued operation"?

Which is not a source of information that would be used as an indicator of impairment?

Wallace Inc wishes to use the revaluation model for this property: The fair value for the property is $60,000. Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years, how much depreciation expense would be recorded in the year subsequent to the revaluation?

Which of the following is correct with respect to "investment properties"?

Explain the meaning of biological assets and agricultural produce. Classify each of the following items as: biological asset, agricultural produce, or neither.