Synergy Ltd

question 39

Multiple Choice

Synergy Ltd. purchased a building in 2008 for €20,000,000 and as of December 31, 2014 had recorded accumulated depreciation on the building of €6,000,000. On December 31, 2014, the company conducted its first revaluation when the fair value was €24,000,000. Under IAS 16, the journal entry recorded on this date would include:

• A) a credit to Revaluation Surplus-Building for €10,000,000.
• B) a debit to Revaluation Surplus-Building for €14,000,000.
• C) a debit to Loss on Revaluation-Building for €14,000,000.
• D) a credit to Loss on Revaluation-Building for €10,000,000.

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Definitions:

Belief Perseverance

The psychological phenomenon where individuals cling to their initial views or explanations despite the confrontation with new, contradictory information.

Social Psychology

The examination of individuals' thoughts, emotions, and actions within societal settings through scientific methods.

Belief Perseverance

The tendency for people to hold on to their beliefs even in the face of contradictory evidence.

Cognitive Stickiness

The tendency for certain beliefs or pieces of information to remain persistent in one's mind despite counterarguments or evidence to the contrary.