Wilson Inc Wishes to Use the Revaluation Model for This

question 38

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. Assuming this is the first year of using the revaluation model, which of the following amounts will be booked?

• A)$60,000 debit to profit and loss.
• B)$60,000 credit to profit and loss.
• C)$60,000 debit to OCI.
• D)$60,000 credit to OCI.

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Definitions:

Exchange Rate

The rate at which one currency will be exchanged for another currency.

Functional Currency

The primary currency used by a business or unit in its financial statements, reflecting the economic environment in which it operates.

Foreign Operation

This term refers to a business or branch operation located in a country different than the headquarters or parent company.