Question
Simpson Company applies revaluation accounting to plant assets with a carrying value of $800,000, a useful life of 4 years, and no salvage value. Depreciation
Simpson Company applies revaluation accounting to plant assets with a carrying value of $800,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of $750,000.
The financial statements for year one will include the following information
| A. Accumulated depreciation $200,000.
| ||
| B. Depreciation expense $50,000.
| ||
| C. Plant assets $750,000.
| ||
| D. Revaluation surplus $50,000.
|
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Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
