Brahms Ltd Acquired a Property of Land and Building for $1.5

question 49

Multiple Choice

Brahms Ltd acquired a property of land and building for $1.5 million.Management estimates the value of land to be 40% of cost.The building is estimated to have a useful life of 50 years.After 25 years,the property was revalued at 1.2 million.It is expected that the life of building will remain the same and salvage value is expected to be $100,000.What is the revaluation gain(loss) for building and the depreciation expense one year after revaluation?

• A) $120,000; $24,800
• B) ($120,000); $28,800
• C) $220,000; $24,800
• D) ($220,000); $28,800
• E) None of the given answers

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Definitions:

Analytical Comparisons

Comparisons made using analytical methods to examine differences or relationships among variables in a dataset.

Only Two Groups

A condition where only two distinct categories or groups are considered for comparison or analysis.

Dunnett Test

A statistical test used to compare multiple treatments with a control in experimental studies.

Reference Group

A group used as a standard for comparison in a research study, often to evaluate the effects of a treatment or condition.