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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Definitions:

Union Density Rates

The percentage of workers in a specific area or industry that are members of unions.

Employment-At-Will Doctrine

A legal principle stating that an employment relationship can be terminated at any time by either the employer or employee for any reason that is not illegal.

Labor Market

The supply of available workers in relation to available work, influenced by factors such as unemployment rates, wages, and education levels.

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A framework or set of principles developed through court decisions that provides guidance on interpreting laws or regulations.