Wilson Inc Wishes to Use the Revaluation Model for This

question 67

Multiple Choice

Wilson Inc wishes to use the revaluation model for this property: $$\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\\hline \text { Building Gross Value } & 120,000 \\\hline \text { Building Accumulated Depreciation } & 40,000 \\\hline \text { Net carrying value } & 80,000 \\\hline\end{array}$$ The fair value for the property is $140,000. What amount would be booked to the "accumulated depreciation" account if Wilson chooses to use the elimination method to record the revaluation?

• A)$40,000 debit.
• B)$40,000 credit.
• C)$60,000 debit.
• D)$140,000 credit.

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Definitions:

Yield to Maturity

The total expected return on a bond if it is held until the date it matures, accounting for its current market price, par value, coupon interest rate, and time to maturity.

Interest Rates

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Par Value

The face or nominal value of a bond, stock share, or coupon, as specified by the issuer.

Coupon Rate

Annually, the interest earned on a bond represented as a percentage of its face value.