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

The fair value for the property is $20,000.Assuming this is the first year of using the revaluation model,what amount would be booked to the "other comprehensive income" 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.Assuming this is the first year of using the revaluation model,what amount would be booked to the "other comprehensive income" 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

A)Amount of revaluation = (20 - 80)= 60,000 revaluation loss/debit,booked to profit and loss,not OCI

Wilson Inc Wishes to Use the Revaluation Model for This