Wilson Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 120,000 \\ \hline \text { Building Accumulated Depreciation } & 40,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] The fair value for the property is $20,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the "other comprehensive income" account if Wilson chooses to use the proportional method to record the revaluation?

A) $0 B) $30,000 debit. C) $30,000 credit. D) $60,000 debit. A) $0 B) $30,000 debit. C) $30,000 credit. D) $60,000 debit.

Wilson Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 120,000 \\ \hline \text { Building Accumulated Depreciation } & 40,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] The fair value for the property is $40,000. Assuming this is the first year of using the revaluation model, which of the following amounts will be booked?

A) $40,000 debit to profit and loss. B) $40,000 credit to profit and loss. C) $40,000 debit to OCI. D) $40,000 credit to OCI. A) $40,000 debit to profit and loss. B) $40,000 credit to profit and loss. C) $40,000 debit to OCI. D) $40,000 credit to OCI.

Wallace Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 150,000 \\ \hline \text { Building Accumulated Depreciation } & 70,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] The fair value for the property is $60,000. What amount would be booked to the "accumulated depreciation" account if Wallace chooses to use the elimination method to record the revaluation?

A) $20,000 debit. B) $70,000 credit. C) $70,000 debit. D) $60,000 credit. A) $20,000 debit. B) $70,000 credit. C) $70,000 debit. D) $60,000 credit.

Wilson Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 120,000 \\ \hline \text { Building Accumulated Depreciation } & 40,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] The fair value for the property is $140,000. What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

A) $40,000 debit. B) $40,000 credit. C) $60,000 debit. D) $140,000 credit. A) $40,000 debit. B) $40,000 credit. C) $60,000 debit. D) $140,000 credit.

Wilson Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 120,000 \\ \hline \text { Building Accumulated Depreciation } & 40,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] The fair value for the property is $140,000. Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years, how much would be booked to accumulated depreciation in the year subsequent to the revaluation?

A) $16,000 debit. B) $16,000 credit. C) $28,000 credit. D) $28,000 debit. A) $16,000 debit. B) $16,000 credit. C) $28,000 credit. D) $28,000 debit.

Explain the meaning of biological assets and agricultural produce. Classify each of the following items as: biological asset, agricultural produce, or neither. \[\begin{array} { | c | l | c | c | c | } \hline &\text { Item } & \text { Biological asset } & \begin{array} { c } \text { Agricultural } \\ \text { produce } \end{array} & \text { Neither } \\ \hline \text { i. }&\text { Salmon in the ocean } & & & \\ \hline \text { i. }&\text { Farmed salmon } & & & \\ \hline \text { iii. } & \text { Wheat } & & & \\ \hline \text { iv. }& \text { Potted tropical plants in nursery } & & & \\ \hline \text { v. } &\text { Cattle used in breeding } & & & \\ \hline \end{array}\]

Biological assets are living plants and

Wallace Inc wishes to use the revaluation model for this property: \[\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\ \hline \text { Building Gross Value } & 120,000 \\ \hline \text { Building Accumulated Depreciation } & 40,000 \\ \hline \text { Net carrying value } & 80,000 \\ \hline \end{array}\] 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 would be booked to accumulated depreciation in the year subsequent to the revaluation?

A) $12,000 debit. B) $12,000 credit. C) $16,000 credit. D) $16,000 debit. A) $12,000 debit. B) $12,000 credit. C) $16,000 credit. D) $16,000 debit.

Based on the following information, what is the impairment amount to be recorded? \[\begin{array} { | l | r | } \hline \text { Cost } & \$ 750,000 \\ \hline \text { Accumulated depreciation } & 530,000 \\ \hline \text { Value in use (sum of discounted cash flows) } & 130,000 \\ \hline \text { Fair value } & 140,000 \\ \hline \text { Disposal costs } & 15,000 \\ \hline \end{array}\]

A) $90,000 B) $125,000 C) $130,000 D) $220,000 A) $90,000 B) $125,000 C) $130,000 D) $220,000

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

Wilson Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 120,000 Building Accumulated Depreciation 40,000 Net carrying value 80,000 The fair value for the property is $20,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the "other comprehensive income" account if Wilson chooses to use the proportional method to record the revaluation?

(Multiple Choice)

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Question 61

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

(Multiple Choice)

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Question 62

Wilson Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 120,000 Building Accumulated Depreciation 40,000 Net carrying value 80,000 The fair value for the property is $40,000. Assuming this is the first year of using the revaluation model, which of the following amounts will be booked?

(Multiple Choice)

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Question 63

Which statement is not correct?

(Multiple Choice)

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Question 64

Wallace Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 150,000 Building Accumulated Depreciation 70,000 Net carrying value 80,000 The fair value for the property is $60,000. What amount would be booked to the "accumulated depreciation" account if Wallace chooses to use the elimination method to record the revaluation?

(Multiple Choice)

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Question 65

Which of the following is correct with respect to the "recoverable amount"?

(Multiple Choice)

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Question 66

Wilson Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 120,000 Building Accumulated Depreciation 40,000 Net carrying value 80,000 The fair value for the property is $140,000. What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

(Multiple Choice)

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Question 67

Wilson Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 120,000 Building Accumulated Depreciation 40,000 Net carrying value 80,000 The fair value for the property is $140,000. Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years, how much would be booked to accumulated depreciation in the year subsequent to the revaluation?

(Multiple Choice)

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Question 68

Explain how non-current assets that are held for sale should be accounted for.

(Essay)

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Question 69

Explain the meaning of biological assets and agricultural produce. Classify each of the following items as: biological asset, agricultural produce, or neither. Item Biological asset Agricultural produce Neither i. Salmon in the ocean i. Farmed salmon iii. Wheat iv. Potted tropical plants in nursery v. Cattle used in breeding

(Essay)

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Question 70

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.

(Essay)

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Question 71

Compare the proportional method and the elimination method for recording the revaluation entry. Contrast the benefits and drawbacks of each method.

(Essay)

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Question 72

How is revaluation of non-current assets accounted for?

(Multiple Choice)

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Question 73

How should a discontinued operation be presented in the financial statements?

(Multiple Choice)

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Question 74

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

(Multiple Choice)

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Question 75

Which statement is correct?

(Multiple Choice)

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Question 76

Explain the accounting for assets related to the agricultural industry.

(Essay)

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Question 77

What is "fair value"?

(Multiple Choice)

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Question 78

Wallace Inc wishes to use the revaluation model for this property: Before Revaluation Building Gross Value 120,000 Building Accumulated Depreciation 40,000 Net carrying value 80,000 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 would be booked to accumulated depreciation in the year subsequent to the revaluation?

(Multiple Choice)

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Question 79

Based on the following information, what is the impairment amount to be recorded? Cost \ 750,000 Accumulated depreciation 530,000 Value in use (sum of discounted cash flows) 130,000 Fair value 140,000 Disposal costs 15,000

(Multiple Choice)

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Question 80

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

Which statement is not correct?

Which of the following is correct with respect to the "recoverable amount"?

Explain how non-current assets that are held for sale should be accounted for.

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.

Compare the proportional method and the elimination method for recording the revaluation entry. Contrast the benefits and drawbacks of each method.

How is revaluation of non-current assets accounted for?

How should a discontinued operation be presented in the financial statements?

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

Which statement is correct?

Explain the accounting for assets related to the agricultural industry.

What is "fair value"?

Based on the following information, what is the impairment amount to be recorded? Cost \ 750,000 Accumulated depreciation 530,000 Value in use (sum of discounted cash flows) 130,000 Fair value 140,000 Disposal costs 15,000

Fundamentals of Financial Accounting Theory

Conceptual Frameworks for Financial Reporting

Accrual Accounting

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Cash and Receivables

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Property, Plant and Equipment

Intangible Assets, Goodwill, Mineral Resources, and Government Grants

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