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

question 22

Multiple Choice

When using the revaluation model of accounting for PP&E assets (proportionate method) ,

• A) a Revaluation Surplus account is not used.
• B) depreciation continues to be charged in the original pattern.
• C) the asset account and its related contra-asset are both adjusted.
• D) over the life of the asset, it is possible that there can be a net increase in net income from revaluations.

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