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

The fair value for the property is $150,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Smith chooses to use the elimination method to record the revaluation?
A)$0
B)$60,000 debit.
C)$60,000 credit.
D)$90,000 credit.

Question

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

The fair value for the property is $150,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Smith chooses to use the elimination method to record the revaluation?
A)$0 
B)$60,000 debit. 
C)$60,000 credit. 
D)$90,000 credit.

Quizplus · Accepted Answer

A)150 - 60 = 90,000 revaluation gain,booked to OCI,not profit and loss.

Smith Inc Wishes to Use the Revaluation Model for This