Grover Inc Wishes to Use the Revaluation Model for This

question 26

Multiple Choice

Grover Inc wishes to use the revaluation model for this property: $$\begin{array} { | l | r | } \hline & \text { Before Revaluation } \\\hline \text { Building Gross Value } & 160,000 \\\hline \text { Building Accumulated Depreciation } & 40,000 \\\hline \text { Net carrying value } & 120,000 \\\hline\end{array}$$ The fair value for the property is $140,000. Assuming this is the first year of using the revaluation model, what amount would be booked to profit and loss if Grover chooses to use the elimination method to record the revaluation?

• A)$0
• B)$20,000 credit.
• C)$20,000 debit.
• D)$30,000 credit.

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Definitions:

Monopoly Power

It is the ability of a single seller or producer to control prices and total market output.

Optimal Output

The level of production that maximizes a firm's profits or minimizes its costs, depending on the context.

Incomplete Information

A situation where all parties in a transaction do not have full knowledge about actions, intentions, or preferences of other parties.

Economic Inefficiencies

Occurrences where resources are not allocated optimally, leading to lost potential output or welfare.