Assume the same facts as indicated above, except that, between December 31, 2020, and December 31, 2021, the property's fair value had decreased by $ 10,000. As a result, Tunisia's 2021 income statement will include a
A) $ 10,000 loss.
B) $ 8,000 loss.
C) $ 8,000 gain (other comprehensive income).
D) $ 2,000 loss.

Question

Quizplus · Accepted Answer

Since the property's fair value has decreased by $10,000, Tunisia will record an $8,000 loss ($10,000 decrease minus $2,000 accumulated depreciation). This loss will be reported on the income statement as a result of the decrease in fair value.

Assume the Same Facts as Indicated Above, Except That, Between