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

The fair value for the property is $150,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much would be booked to accumulated depreciation in the year subsequent to the revaluation?
A)$12,000 debit.
B)$12,000 credit.
C)$30,000 credit.
D)$30,000 debit.

Question

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

The fair value for the property is $150,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much would be booked to accumulated depreciation in the year subsequent to the revaluation?
A)$12,000 debit. 
B)$12,000 credit. 
C)$30,000 credit. 
D)$30,000 debit.

Quizplus · Accepted Answer

C)150 / 5 years = 30,000 credit

Smith Inc Wishes to Use the Revaluation Model for This