Robertson Inc. prepares its financial statements according to International Financial Reporting Standards (IFRS). At the end of its 2018 fiscal year, the company chooses to revalue its equipment. The equipment cost $540,000, had accumulated depreciation of $240,000 at the end of the year after recording annual depreciation, and had a fair value of $330,000. After the revaluation, the accumulated depreciation account will have a balance of:
A) $240,000.
B) $264,000.
C) $270,000.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

$240,000 × ($330,000/300,000) = $264,000.