For the next 3 questions..What amount should be recognized as pretax revaluation surplus on January 1, 2019? A. 125,000,000B. 385,000,000C. 105,000,000D. 315,000,000 What amount should be recorded as depreciation for 2019?A. 15,000,000B. 27,500,000C. 22,500,000D. 15,750,000 What amount should be reported as pretax revaluation surplus on December 31, 2019? A. 125,000,000B. 117,500,000C. 119,750,000D. 105,000,000 On January 1, 2019, Erwin Company reported the following account balances:CostAccumulated DepreciationLand50,000,000Building300,000,00090,000,000The land and building were revalued on January 1, 2019 and the revaluation revealed the followingsound value:Land70,000,000Building315,000,000There were no additions or disposals during 2019. Depreciation is computed on the straight line. Theestimated life of the building is 20 years.

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What amount should be recognized as pretax revaluation surplus on January 1, 2019?

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

For the next 3 questions..

What amount should be recognized as pretax revaluation surplus on January 1, 2019?

A. 125,000,000

B. 385,000,000

C. 105,000,000

D. 315,000,000

What amount should be recorded as depreciation for 2019?

A. 15,000,000

B. 27,500,000

C. 22,500,000

D. 15,750,000

What amount should be reported as pretax revaluation surplus on December 31, 2019?

A. 125,000,000

B. 117,500,000

C. 119,750,000

D. 105,000,000

On January 1, 2019, Erwin Company reported the following account balances:
Cost
Accumulated Depreciation
Land
50,000,000
Building
300,000,000
90,000,000
The land and building were revalued on January 1, 2019 and the revaluation revealed the following
sound value:
Land
70,000,000
Building
315,000,000
There were no additions or disposals during 2019. Depreciation is computed on the straight line. The
estimated life of the building is 20 years.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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