Wilson Inc Wishes to Use the Revaluation Model for This

question 87

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 $40,000. 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)$8,000 credit.
• B)$8,000 debit.
• C)$16,000 credit.
• D)$16,000 debit.

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Definitions:

Modernization Theory

A theory suggesting that traditional societies will develop economically as they adopt more modern practices and technologies.

Global Village

A term coined to describe a world in which communication technology has virtually eliminated geographical distances, making the world more interconnected.

Indigenization

The process of adapting practices, methods, or knowledge to fit local cultural contexts, especially in reference to decolonization efforts and promoting local traditions in various fields.

Cosmopolitanism

Seeing culture as fluid, which helps individuals resist cultural homogenization.