Wallace Inc Wishes to Use the Revaluation Model for This

question 79

Multiple Choice

Wallace 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 $60,000. Using straight-line depreciation and assuming that the property has a remaining depreciable life of 5 years, how much would be booked to accumulated depreciation in the year subsequent to the revaluation?

• A)$12,000 debit.
• B)$12,000 credit.
• C)$16,000 credit.
• D)$16,000 debit.

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