Use the Following Information for Questions

question 22

Multiple Choice

Use the following information for questions.
Simpson Company applies revaluation accounting to plant assets with a carrying value of $800,000, a useful life of 4 years, and no salvage value.Depreciation is calculated on the straight-line basis.At the end of year 1, independent appraisers determine that the asset has a fair value of $750,000.
-The financial statements for year one will include the following information

• A)Accumulated depreciation $200,000.
• B)Depreciation expense $50,000.
• C)Plant assets $750,000.
• D)Revaluation surplus $50,000.

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Definitions:

Meritocracy

Rule by (i.e., leadership given to) persons depending on their merit and ability.

Government

An institution through which a society or community organizes and enforces its collective decisions, policies, and laws.

Principle of Justice

The fundamental moral and ethical guideline that dictates fairness in treatment, distribution of goods, and administration of laws.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary, known for his theories about capitalism and communism.