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3 - A company owns its own office building which it purchased in 2017 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2017: Year Year-End Fair Market Value ($ thousands ) 2017 1,000 2018 600 2019 800 2020 1,300 The impact (in $ thousands) on the income statement in 2020 will most likely be a gain of (ignoring depreciations): a) 200. b) 300. c) 500.

3 - A company owns its own office building which it purchased in 2017 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2017: Year Year-End Fair Market Value ($ thousands ) 2017 1,000 2018 600 2019 800 2020 1,300 The impact (in $ thousands) on the income statement in 2020 will most likely be a gain of (ignoring depreciations): a) 200. b) 300. c) 500.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3 - A company owns its own office building which it purchased in 2017 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2017: Year Year-End Fair Market Value ($ thousands ) 2017 1,000 2018 600 2019 800 2020 1,300 The impact (in $ thousands) on the income statement in 2020 will most likely be a gain of (ignoring depreciations): a) 200. b) 300. c) 500.
Transcribed Image Text:3 - A company owns its own office building which it purchased in 2017 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2017: Year Year-End Fair Market Value ($ thousands ) 2017 1,000 2018 600 2019 800 2020 1,300 The impact (in $ thousands) on the income statement in 2020 will most likely be a gain of (ignoring depreciations): a) 200. b) 300. c) 500.
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