Use the Following Information to Answer the Next Two Questions

question 9

Multiple Choice

Use the following information to answer the next two questions.
Franco Company uses IFRS and owns property, plant and equipment with a historical cost of 5,000,000 euros. At December 31, 2013, the company reported a valuation reserve of
8,565,000 euros. At December 31, 2014, the property, plant and equipment was appraised at
5,525,000 euros.
-The valuation reserve at December 31, 2014 will be reported at

• A) 8,040,000 euros on the Statement of Stockholders' Equity.
• B) 8,565,000 euros in the Assets section of the Statement of Financial Position
• C) 9,090,000 euros in the equity section of the Statement of Financial Position.
• D) 525,000 euros on the Income Statement.

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