Grover Inc. wishes to use the revaluation model for this property:Building Gross ValueBuilding Accumulated DepreciationNet carrying valueThe fair value for the property is $100,000. What amount would be booked to the "accumulated depreciation"account if Grover chooses to use the proportional method to record the revaluation?OA. $20,000 creditB. $10,000 creditO C.SOBefore Revaluation$120,00040,00080,000D. $10,000 debit

The revaluation method of assets involves adjusting the carrying amount of certain assets to their…

Answered: Building Gross Value Building…

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Building Gross Value Building Accumulated Depreciation Net carrying value Before Revaluation $120,000 40,000 80,000

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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Question

Grover Inc. wishes to use the revaluation model for this property:
Building Gross Value
Building Accumulated Depreciation
Net carrying value
The fair value for the property is $100,000. What amount would be booked to the "accumulated depreciation"
account if Grover chooses to use the proportional method to record the revaluation?
OA. $20,000 credit
B. $10,000 credit
O C.
SO
Before Revaluation
$120,000
40,000
80,000
D. $10,000 debit

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