Hale Company Uses IFRS

question 112

Multiple Choice

Hale Company uses IFRS. After 5 full years of use, Hale Company revalues equipment with a carrying value of $930,000 to its fair value of $1,300,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,300,000 and the equipment has a useful life of 10 years with no scrap value. Hale Company depreciates under the straight-line method. What is the new annual depreciation expense after the revaluation?

• A) $0
• B) $93,000
• C) $130,000
• D) $260,000

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Definitions:

Creative Intelligence

A facet of intelligence related to the ability to deal with new situations using creative and innovative solutions and imaginative problem-solving.

Divergent Thinking

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The manipulation of an organism's genes using biotechnology, including the editing, adding, or removing of DNA sequences to achieve desired traits.