Use the Following Information for Questions

question 37

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 journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a

• A)debit to Accumulated Depreciation for $50,000.
• B)credit to Depreciation Expense for $150,000.
• C)credit to Plant Assets for $150,000.
• D)credit to Revaluation Surplus for $150,000.

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Definitions:

Primary Volt-Amps

A measurement of apparent power in an electrical system, primarily used in AC circuits, representing the product of primary voltage and current.

Load Connected

Refers to an electrical component or device that is connected to a circuit and draws power from it.

Secondary

Refers to the output side of a transformer that receives energy from the primary winding and delivers it to the load.

Turns Ratio

The ratio of the number of turns in the primary winding to the number of turns in the secondary winding of a transformer, which determines the voltage transformation.