Use the Following Information to Solve the Following Questions

question 43

Multiple Choice

Use the following information to solve the following questions:
Tunisia Inc. owns assets to which it applies the revaluation model (asset-adjustment method) . The following additional information is available:
1. Accumulated Depreciation at December 31, 2021, (prior to any fair value adjustments) was $ 12,000.
2. Between December 31, 2020, and December 31, 2021, the property's fair value had increased by $ 30,000.
3. The December 31, 2021, balance in the revaluation surplus account (prior to any fair value adjustments) was $ 2,000.
-The adjusted December 31, 2021, in the revaluation surplus account will be

• A) $ 0.
• B) $ 28,000.
• C) $ 30,000.
• D) $ 32,000.

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Definitions:

Empiricism

The view that knowledge should be based on experience and observation, on empirical as opposed to theoretical knowledge.

Positivism

A philosophical theory that asserts that genuine knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Rationalism

A philosophy that emphasizes reason and knowledge acquisition through deductive reasoning and logical analysis, rather than empirical evidence.

Factual Analysis

Examination of data to discover verifiable facts and establish their validity.