On January 1, 2019, Sali Inc. purchased land with a cost of $400,000. The Company uses a revaluation model for assetssubsequent to acquisition. The following information is available for fair value at each year-end (31/12/2019, and 31/12/2020):12/31/201912/31/2020Fair value$450,000$500,0001- The 2020 income statement will reportRecovery of Impairment Loss of $50.000 1- The 2020 income statement will reporta. Recovery of Impairment Loss of $50,000.b. Revaluation surplus of $50,000.C. Recovery of Impairment Loss of $50,000.d. Recovery of Impairment Loss of $50,000, revaluation surplus of $100,0002- The 31/12/2019 statement of financial position will report land at:a. $500,000b. $450,000C. $400,000d. $350,000

Revaluation surplus for 2019 = Fair value of the assets at the end of 2019 - Cost of the assets =…

On January 1, 2019, Sali Inc. purchased land with a cost of $400,000. The Company uses a revaluation model for assets subsequent to acquisition. The following information is available for fair value at each year-end (31/12/2019, and 31/12/2020): 12/31/2019 12/31/2020 Fair value $450,000 $500,000 1- The 2020 income statement will report:

On January 1, 2019, Sali Inc. purchased land with a cost of $400,000. The Company uses a revaluation model for assets subsequent to acquisition. The following information is available for fair value at each year-end (31/12/2019, and 31/12/2020): 12/31/2019 12/31/2020 Fair value $450,000 $500,000 1- The 2020 income statement will report:

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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