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

The fair value for the property is $40,000.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)$8,000 credit.
B)$8,000 debit.
C)$16,000 credit.
D)$16,000 debit.

Question

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

The fair value for the property is $40,000.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)$8,000 credit. 
B)$8,000 debit. 
C)$16,000 credit. 
D)$16,000 debit.

Quizplus · Accepted Answer

A)40 / 5 years = 8,000 credit

Wilson Inc Wishes to Use the Revaluation Model for This