Wallace Inc Wishes to Use the Revaluation Model for This

question 73

Multiple Choice

Wallace Inc wishes to use the revaluation model for this property:

The fair value for the property is $60,000.Assuming this is the first year of using the revaluation model,what amount would be booked to profit and loss if Wallace chooses to use the elimination method to record the revaluation?

• A)$20,000 debit.
• B)$20,000 credit.
• C)$70,000 debit.
• D)$80,000 credit.

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Definitions:

GDP

Gross Domestic Product, a measure of the economic performance of a country, calculated as the total value of all goods and services produced within the country in a specific time period.

Unfunded Promises

Commitments or obligations, especially by a government, for which no money has been set aside to fulfill them.

Economic Theory

A set of principles and frameworks that aim to explain and predict the behaviors of individuals, firms, and governments in an economy.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly, disabled, and unemployed.