On 28 March 2022, Blue Gum Ltd acquired land in California for a cash consideration of US$400 000. At 30 June 2022 the land is revalued to a fair value of US$500 000. The relevant exchange rates are:
28 March 2022 US$1.00 = A$1.15
30 June 2022 US$1.00 = A$1.10
On 30 June 2022, Blue Gum Ltd will record a revaluation gain on the land for:
A) A$100 000
B) A$160 000
C) A$200 000
D) A$217 948

Question

On 28 March 2022, Blue Gum Ltd acquired land in California for a cash consideration of US$400 000. At 30 June 2022 the land is revalued to a fair value of US$500 000. The relevant exchange rates are: 
28 March 2022    US$1.00 = A$1.15
30 June 2022      US$1.00 = A$1.10
On 30 June 2022, Blue Gum Ltd will record a revaluation gain on the land for:
A) A$100 000
B) A$160 000
C) A$200 000
D) A$217 948

Quizplus · Accepted Answer

The Answer of On 28 March 2022, Blue Gum Ltd acquired land in California for a cash consideration of US$400 000. At 30 June 2022 the land is revalued to a fair value of US$500 000. The relevant exchange rates are: 
28 March 2022    US$1.00 = A$1.15
30 June 2022      US$1.00 = A$1.10
On 30 June 2022, Blue Gum Ltd will record a revaluation gain on the land for:
A) A$100 000
B) A$160 000
C) A$200 000
D) A$217 948

On 28 March 2022, Blue Gum Ltd Acquired Land in California