4. Carter Company purchased a building on January 1, 2015 for $15 million. As of December 31, 2018 the accumulated depreciation on the building was $4 million. Assuming Carter Company intends to revalue the building to its current fair value of $18 million, by what amount should the company credit its revaluation surplus? A. 10,000,000 B. 3,000,000 C. 4,000,000 D. 7,000,000 E. 0 5. According to IFRS, which of the following costs is allowed to be capitalized? A. Start-Up Operating Costs for a Business B. General Administrative and Overhead Costs C. Regular Maintenance Costs D. All of the above is allowed to be capitalized E. None of the above is allowed to be capitalized 6. According to IFRS, which of the following costs is allowed to be capitalized? A. Transportation-In Costs for a Long-term Asset B. Cost of dismantling the Asset and site restoration C. Cost to Condition Asset for its intended use D. All of the above is allowed to be capitalized E. None of the above is allowed to be capitalized 7. An entity has a factory that has been shut down for year due to various reasons, including worker unrest and strike. The entity plans to sell this factory. It should A. Classify the factory as investment property. B. Classify the factory as property held for sale in the ordinary course of business under IAS 2 C. Classify the factory as property, plant, and equipment under IAS 16. D. Write off the net book value and disclose that fact in the footnotes to the financial statements 8. JuicePlus Ine. bought a private jet for the use of its top ranking officials. The cost of the private jet is $15 million and can be depreciated either using a composite useful life or a useful life of its major components. It is expected to be used over a period of 7 years. The engine of the jet has a useful life of 5 years. The private jet's tires are replaced every 2 years. In accordance with IAS 16, the private jet will be depreciated using the straight-line method over A. 7 years composite useful life. B. 5 years useful life of the engine, 2 years useful life of the tires, and 7 years useful life applied to the balance cost of the jet. C. 2 years useful life based on conservatism (the lowest useful life of all the parts of the jet). D. 5 years useful life based on a simple average of the useful lifes of all major componenets of the jet