Presto's Brazilian Subsidiary, BrazilCo, owns a corporate office in a desirable location in downtown Brasilia. The property was purchased on 1/1/20X1 for the equivalent of $10 million USD and is being depreciated straight-line over a 30-year life. An appraisal on 12/31/X4 indicated that the building is now worth $14 million.

Required:

1. BrazilCo is asking whether it can remeasure the property to show this increased value on its statement of financial position and, if so, what the offsetting (credit) entry should be.
2. BrazilCo is also asking whether this remeasurement would have any effect on its existing policy to depreciate the building straight-line over 30 years.
3. Finally, Presto is wondering whether this increased value is appropriate to carry into its U.S. consolidated financial statements.