1. How is revaluation of non-current assets accounted for in its first year?

a. Revaluation loss is booked to profit and loss.

b. Revaluation loss is booked to other comprehensive income.

c. Revaluation surplus is not recognized in other comprehensive income.

d. Revaluation surplus is always booked to profit and loss.

2. Land was purchased for $400,000. At the end of the first year, the land had a fair value of $380,000. Assume that the revaluation approach under IRS has been chosen for the accounting for land. Which one of the following would be part of the year end adjusting entry for the land?

a. $20,000 credit to profit and loss

b. $20,000 debit to profit and loss

c. $20,000 credit to OCI

d. $20,000 debit to OCI

3. Which of the following is a difference between intangible assets and property, plant and equipment (PPE)?

a. PPE benefit more than one year.

b. Intangibles lack physical substance.

c. Intangible assets are generally identifiable.

d. Intangibles are held for use in the ordinary course of business.