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

The fair value for the property is $140,000.Assuming this is the first year of using the revaluation model,which of the following amounts will be booked?
A)$60,000 debit to profit and loss.
B)$60,000 credit to profit and loss.
C)$60,000 debit to OCI.
D)$60,000 credit to OCI.

Question

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

The fair value for the property is $140,000.Assuming this is the first year of using the revaluation model,which of the following amounts will be booked?
A)$60,000 debit to profit and loss. 
B)$60,000 credit to profit and loss. 
C)$60,000 debit to OCI. 
D)$60,000 credit to OCI.

Quizplus · Accepted Answer

D)140 - 80 = 60,000 revaluation gain

Wilson Inc Wishes to Use the Revaluation Model for This