Use the Following Information for Questions

question 64

Multiple Choice

Use the following information for questions.
Egypt Corp.owns equipment that originally cost $100,000.At December 31, 2017, the equipment's book value (after 2017 depreciation was booked) is $60,000.It is determined that the fair value of the equipment at this date is $90,000.Although Egypt's policy is to apply the revaluation model using the proportionate method, this is the first time the company has done it.
-By how much must the accumulated depreciation account be increased (decreased) at December 31, 2017?

• A)$20,000
• B)$40,000
• C)$60,000
• D)$(60,000)

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