ABC Company applies revaluation accounting to plant

assets with a cost of $$600,000,$ a useful life of $4$ years, and no

salvage value. Depreciation is calculated on the straight$-$line basis. At the

end of year $2,$ independent appraisers determine that the asset has a fair value

of $$350,000.$ at the end of year $2$ ABC estimated that the assets will have $$20,000$ salvage value and $3$ years remaining in its life.

a$-$ The journal entry to adjust the plant assets to fair value and record revaluation in year $2$ will include a :

$1-$ debit to accumulated depreciation $50,000$

$2-$ credit to unrealized gain $50,000$

$3-$ debit to plant asset $350,000$

$4-$ debit to unrealized gain $50,000$

b the depreciation expense for year $3$ will be:

$110,000$

$116,666$

$175,000$

none of the answers

c at the end of year $3$ independent appraisers determine that the asset has a fair value of $$160,000.$ the amount of impairment that should be recorded

zero

$10,000$

$60,000$

$50,000$

d at the end of year $4$ the asset book value should appear in the financial statement at:

$220,000$

$160,000$

$350,000$

$90,000$