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 Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation?
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 Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![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 Accumulated
Depreciation account, if Smitty chooses to use the proportional method to record
the revaluation?
$75,000 Credit
O None of the above.
O $35.000 Credit
$35.000 Debit
$40,000 Debit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9be7c77c-5fb4-4423-85ff-6e600f19a92a%2Faa302b18-e5fa-4036-9a53-245046463a11%2Fbyx8amn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 Accumulated
Depreciation account, if Smitty chooses to use the proportional method to record
the revaluation?
$75,000 Credit
O None of the above.
O $35.000 Credit
$35.000 Debit
$40,000 Debit
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