15) Grover Inc. wishes to use the revaluation model for this property: Before Revaluation Building Gross...
15) Grover 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 $100,000. What would be the effect of recording the revaluation?
A) $20,000 decrease in net income
B) $20,000 increase in net income
C) $20,000 decrease in other comprehensive income
D) $20,000 increase in other comprehensive income
Homework Answers
Net carrying value of property = $80,000
Fair value of property = $100,000
Increase in other comprehensive income = Fair value of property - Net carrying value of property
= 100,000-80,000
= $20,000
$20,000 increase in other comprehensive income
Correct option is D.
Kindly comment if you need further assistance. Thanks‼!
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15) Grover Inc. wishes to use the revaluation model for this
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Gain on disposal of equipment
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Unrealized (loss)/gain on FV-NI investments
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(Loss)/gain on disposal of building
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