Sterling Company wishes to revalue some equipment with an original cost of $200 000 and accumulated depreciation of $30 000. The equipment now has a fair value of $100 000. What revaluation will be recorded?

Question

Quizplus · Accepted Answer

The carrying amount of the equipment is $170,000 ($200,000 - $30,000). The fair value is $100,000, so the revaluation decrement is $70,000 ($170,000 - $100,000).

Sterling Company Wishes to Revalue Some Equipment with an Original