Manchester Ltd Has a Building That Originally Cost $850 000

question 2

Multiple Choice

Manchester Ltd has a building that originally cost $850 000 and has accumulated depreciation of $120 000 as at 30 June 2012.It is decided on 1 July 2012 that the building should be revalued to $820 000.What are the appropriate entries to record the revaluation using the net method?

• A)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Asset revaluation reserve } & 30000 & \\
• \hline \mathrm { Cr } & \text { Building } & & 30000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | l | }
• \hline \mathrm { Dr } & \text { Building } & 90000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | l | c | c | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation-building } & 30000 & \\
• \hline \mathrm { Cr } & \text { Building } & & 30000 \\
• \hline \mathrm { Dr } & \text { Accumulated depreciation } & 90000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | l | c | c | }
• \hline \mathrm { Dr } & \text { Accumulated depreciation-building } & 120000 & \\
• \hline \mathrm { Cr } & \text { Building } & & 120000 \\
• \hline \mathrm { Dr } & \text { Building } & 90000 & \\
• \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 90000 \\
• \hline
• \end{array}\]

---

Definitions:

Internet Options Tab

A section within Web browsers or the control panel in Windows operating systems where users can adjust settings related to their Internet connectivity and security.

Clean Installation

The process of installing an operating system on a computer from scratch, typically to replace or upgrade the existing system, ensuring no residual files remain.

Windows Vista

An operating system by Microsoft, released in January 2007, known for its improved security features but criticized for performance issues.

OS

Operating System, the essential software that manages computer hardware and software resources, providing common services for computer programs.