Use the Following Information for Questions

question 88

Multiple Choice

Use the following information for questions.
On January 1, 2011, Miles Inc.purchased equipment with a cost of €3,570,000, a useful life of
15 years and no salvage value.The company uses straight-line depreciation.At December 31, 2011, an independent appraiser determines that the fair value of the equipment is €3,500,000.Miles prepares financial statements using IFRS and elects to revalue the asset.
-In the second step of the 2-step revaluation process at the December 31, 2011, the journal entry to revalue the equipment will include a

• A)debit to Depreciation Expense for €357,000.
• B)credit to Equipment for €70,000.
• C)credit to Accumulated Depreciation for €238,000.
• D)credit to Revaluation Surplus for €70,000.

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Definitions:

Intoxicated

A state of being under the influence of substances, such as alcohol or drugs, leading to altered mood, cognition, and motor function.

Ego Depletion

A state where individuals have a diminished capacity to exert self-control or engage in cognitive tasks, due to the depletion of a limited pool of mental resources.

Impulsivity

The tendency to act on whims and desires without considering the consequences or the appropriateness of the action.

Aggression

Behavior intended to harm or injure another being, either physically or psychologically.