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

The fair value for the property is $60,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much depreciation expense would be recorded in the year subsequent to the revaluation?
A)$12,000 debit.
B)$12,000 credit.
C)$16,000 credit.
D)$16,000 debit.

Question

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

The fair value for the property is $60,000.Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years,how much depreciation expense would be recorded in the year subsequent to the revaluation?
A)$12,000 debit. 
B)$12,000 credit. 
C)$16,000 credit. 
D)$16,000 debit.

Quizplus · Accepted Answer

A)60 / 5 years = 12,000 debit

Wallace Inc Wishes to Use the Revaluation Model for This