The revaluation model of accounting for PP&E assets
A)May be applied to all classes of PP&E including investment property.
B)Uses a revaluation surplus account to hold net increases in the asset's fair value.
C)Should not be applied to investment property.
D)(b) and (c) only

Question

Quizplus · Accepted Answer

The revaluation model may be applied to all classes of PP&E but should not be applied to investment property. It uses a revaluation surplus account to hold net increases in the asset's fair value. Therefore, option D is the correct answer.

The Revaluation Model of Accounting for PP&E Assets