When Using the Revaluation Model of Accounting for PP&E Assets

question 14

Multiple Choice

When using the revaluation model of accounting for PP&E assets (asset-adjustment or elimination method) ,

• A) the related Accumulated Depreciation account is closed to OCI.
• B) depreciation continues to be charged in the original pattern.
• C) the difference between fair value and book value is always debited to Revaluation Surplus (OCI).
• D) a new depreciation rate must be calculated.

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