Use the Following Information for Questions

question 29

Multiple Choice

Use the following information for questions.
On January 1, 2011, Fredo Inc.purchased equipment with a cost of €2,550,000, 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 €2,500,000 Fredo prepares financial statements using IFRS and elects to revalue the asset.
-In the second step of the 2-step revaluation process at December 31, 2011, the journal entry to revalue the equipment will include a

• A)debit to Depreciation Expense for €255,000.
• B)credit to Equipment for €50,000.
• C)credit to Accumulated Depreciation for €170,000.
• D)credit to Revaluation Surplus for €150,000.

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Definitions:

Bimodal Distributions

Probability distributions with two different modes or peaks, reflecting two dominant values in a dataset.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, aiming to define the center of the data set with measures such as mean, median, and mode.

Outliers

Observations in data that are significantly different from the majority of the data points, potentially indicating a measurement error or a novel finding.

Central Tendency

A numerical value that summarizes an entire data distribution by identifying a central point, like the average, midpoint, or most frequent value.