On 30 June 2014, Walters Limited Had an Item of Plant

question 13

Short Answer

On 30 June 2014, Walters Limited had an item of plant with an original cost of $140 000 and accumulated depreciation of $56 000. At this date, the fair value of the plant was $100 000. The net effect of the journal entries necessary to record the revaluation of the plant by Walters to fair value on 30 June 2014 in accordance with AASB 116 Property, Plant and Equipment is which of the following? $$\begin{array} { l l l l } \text { Accurmlated depreciation - plarit } & \text { Dr } & 28000 \\\quad \text { Plarit } & \mathrm { Cr } & & 12000 \\\text { Asset revaluation suplus } & \mathrm { Cr } & & 16000 \\\\\text { Plart } & \mathrm { Dr } & 12000 & \\\quad \text { Asset revaluation suplus } & \mathrm { Cr } & & 12000 \\& & & \\\text { Gain on revaluation - OCI } & \mathrm { Dr } & 12000 & \\\text { Asset revaluation surplus } & \mathrm { Cr } & & 12000 \\& & & \\\text { Plart } & \mathrm { Dr } & 12000 & \\\text { Gair on revaluation - OCI } & \mathrm { Dr } & 16000 & \\\text { Accurnulated depreciation - plart } & \mathrm { Cr } & & 28000\end{array}$$

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Definitions:

0 And 10

In the context of scales, '0 and 10' often refer to the endpoints of a Likert scale used in questionnaires, where '0' might represent 'strongly disagree' and '10' 'strongly agree.'

Established Measures

Validated and widely accepted tools or instruments used to assess or measure specific variables in research.

Validity

The degree to which a research study or testing instrument accurately measures what it intends to measure.

Interval Measures

A scale of measurement where the difference between any two consecutive measures is the same, but it does not have a true zero point, e.g., temperature scales.