Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Building account, if Smitty chooses to use the elimination method to record the revaluation? $30,000 Debit $40,000 Debit None of the above. $70,000 Debit $150,000 Debit

Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Building account, if Smitty chooses to use the elimination method to record the revaluation? $30,000 Debit $40,000 Debit None of the above. $70,000 Debit $150,000 Debit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Smitty Inc. wishes to use the revaluation model for this property:
Before Revaluation
• Building Gross Value 120,000
• Building Accumulated Depreciation 40,000
• Net carrying value 80,000
The fair value for the property is $150,000. Assuming this is the first year of using
the revaluation model, what amount would be booked to the Building account, if
Smitty chooses to use the elimination method to record the revaluation?
$30,000 Debit
$40,000 Debit
None of the above.
$70,000 Debit
$150,000 Debit

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