Wilson Inc. wishes to use the revaluation model for this property:

	Before Revaluation
Building Gross Value	$120,000
Building Accumulated Depreciation	40,000
Net carrying value	80,000

The fair value for the property is

$40,000.

Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years, how much depreciation expense would be recorded in the year subsequent to the revaluation?

A.

$8,000

credit

B.

$16,000

credit

C.

$16,000

debit

D.

$8,000

debit

2)

Which of the following is correct with respect to the "fair value model"?

A.

The fair value model recognizes depreciation annually in the revaluation surplus account.

B.

The fair value model recognizes depreciation annually in the other comprehensive income.

C.

The fair value model recognizes depreciation annually in the income statement.

D.

The fair value model does not recognize any depreciation expense in the financial statements.

What impairment, if any, exists on this product line?

Product CDC

Original Cost

$5,200,000

Accumulated depreciation

2,100,000

Fair Value

4,500,000

Costs to sell

500,000

Value in use

4,300,000

A.

$4,000,000

B.

$1,200,000

C.

$900,000

D.

$0

3)

Assume that a purchase invoice for

$1,000

was appropriately recorded in fiscal 2019, but the inventory was excluded in error during the ending inventory count. What impact will this have on fiscal 2020 financial reporting?

A.Cost of goods available for sale is overstated by

$1,000.

B.Beginning inventory is overstated by

$1,000.

C.Cost of sales is understated by

$1,000.

D.Gross margin is understated by

$1,000.