QUESTION 2: Revaluation 12m) A company unexpectedly has to write off the value of a building. The following information is given: Gross value of PPE = 1 million EUR Accumulated depreciation of PPE = 200,000 EUR Net value of PPE = 800,000 EUR Gross value of building = 500,000 EUR Accumulated deprecation of building = 100,00 EUR Net value of building = 400,000 EUR Choose from the four options below the correct accounting treatment: a) Credit: Net PPE 800,000 EUR; Debit: R/E 800,000 EUR b) Credit: Net PPE 400,000 EUR; Debit: R/E 400,000 EUR c) Credit: Net PPE 500,000 EUR; Debit: R/E 500,000 EUR d) Credit: Gross PPE 1,000,000 EUR; Debit: R/E 1,000,000 EUR -

A company unexpectedly has to write off the value of a building. The following information is given: - Gross value of PPE =1 million EUR - Accumulated depreciation of PPE =200,000 EUR - Net value of PPE =800,000 EUR - Gross value of building =500,000 EUR - Accumulated deprecation of building =100,00 EUR - Net value of building =400,000 EUR Choose from the four options below the correct accounting treatment: a) Credit: Net PPE 800,000 EUR ; Debit: R/E 800,000 EUR b) Credit: Net PPE 400,000 EUR; Debit: R/E 400,000 EUR c) Credit: Net PPE 500,000 EUR ; Debit: R/E 500,000 EUR d) Credit: Gross PPE 1,000,000 EUR ; Debit: R/E 1,000,000 EUR