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

The fair value for the property is $40,000.Assuming this is the first year of using the revaluation model,which of the following amounts will be booked?
A)$40,000 debit to profit and loss.
B)$40,000 credit to profit and loss.
C)$40,000 debit to OCI.
D)$40,000 credit to OCI.

Question

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

The fair value for the property is $40,000.Assuming this is the first year of using the revaluation model,which of the following amounts will be booked?
A)$40,000 debit to profit and loss. 
B)$40,000 credit to profit and loss. 
C)$40,000 debit to OCI. 
D)$40,000 credit to OCI.

Quizplus · Accepted Answer

A)40 - 80 = 40,000 revaluation loss

Wilson Inc Wishes to Use the Revaluation Model for This