Stairway Ltd Is Undertaking Its Regular Review of the Fair

question 17

Multiple Choice

Stairway Ltd is undertaking its regular review of the fair value of its assets.It has discovered the following material changes

What are the journal entries required to record the revaluations in accordance with relevant accounting standards?

• A) \[\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Loss on revaluation of land } & 30000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline\\ \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 50000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]
• B) \[\begin{array} { | c | l | c | c | } \hline \mathrm { Dr } & \text { Loss on revaluation of land } & 30000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 50000 \\ \hline \mathrm { } & & & \\ \hline \mathrm { Dr } & \text { Accumulated depreciation-equipment } & 260000 & \\ \hline \mathrm { Cr } & \text { Equipment } & &260000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & &60000 \\ \hline \end{array}\]
• C) \[\begin{array} { | l | l | l | l | } \hline \mathrm { Dr } & \text { Land-Lenah Valley } & 50000 & \\ \hline \mathrm { Cr } & \text { Land-Howrah } & & 30000 \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 20000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Accumulated depreciation–equipment } & 260000 & \\ \hline \mathrm { Cr } & \text { Equipment } & & 260000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]
• D) \[\begin{array} { | c | l | r | r | } \hline \mathrm { Dr } & \text { Land } & 20000 & \\ \hline \mathrm { Cr } & \text { Gain on revaluation } & & 20000 \\ \hline & & & \\ \hline \mathrm { Dr } & \text { Equipment } & 60000 & \\ \hline \mathrm { Cr } & \text { Asset revaluation reserve } & & 60000 \\ \hline \end{array}\]

---

Definitions:

Attention-Deficit/Hyperactivity Disorder

A disorder related to the development of the nervous system marked by symptoms of distractibility, excessive energy, and spontaneous actions that negatively affect normal functioning or growth.

Cognitive-Behavioral Therapy

A form of psychotherapy that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systemic process.

Prognosis

A prediction of the likely course and outcome of a disease based on general health, age, and the severity of disease symptoms at the time of diagnosis.

Adolescent Depression

A mental health disorder affecting teenagers, characterized by persistent feelings of sadness, hopelessness, and a lack of interest in activities.