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

The fair value for the property is $20,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?
A)$0
B)$30,000 debit.
C)$30,000 credit.
D)$60,000 debit.

Question

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

The fair value for the property is $20,000.What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the proportional method to record the revaluation?
A)$0 
B)$30,000 debit. 
C)$30,000 credit. 
D)$60,000 debit.

Quizplus · Accepted Answer

B)Amount of revaluation = (20 - 80)/ 80 = 75% revaluation loss/debit
Proportional decrease in accumulated depreciation = 40,000 × 75% = 30,000 debit

Wilson Inc Wishes to Use the Revaluation Model for This