Use the Following Information to Answer Questions
an Extract

question 27

Multiple Choice

Use the following information to answer questions
An extract of a company's draft statement of financial position at 30 June 2012 discloses the following:
$\begin{array} { l r r } \text { Plant (at cost) } & \$ 500,000 & \\\text { Less Accumulated Depreciation } & \underline { 300,000 } & \$ 200,000\end{array}$

On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the Plant was $250 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
-The journal entries necessary to record the revaluation of plant (ignoring any tax effect) at 30 June 2013 in accordance with IAS 16 Property, Plant and Equipment is:

• A)\(\begin{array}{llll}
• \text { Accumulated depreciation - Plant } & \mathrm{Dr} & 300,000 & \\
• \text { Plant } & \mathrm{Cr} & 300,000\\\\
• \text { Plant } & \mathrm{Dr} & 150,000 & \\
• \quad \text { Gain on revaluation - OCI } & \mathrm{Cr} & 150,000
• \end{array}\)
• B)\(\begin{array} { l l l l }
• \text { Plant } & \mathrm { Dr } & 150,000 & \\
• \text { Gain on revaluation - OCI } & \mathrm { Cr } & 150,000
• \end{array}\)
• C)\(\begin{array} { c l l l }
• \text { Gain on revaluation - OCI } & \mathrm { Dr } & 150,000 & \\
• \text { Asset revaluation surplus } & \mathrm { Cr } & & 150,000
• \end{array}\)
• D)\(\begin{array} { l l l l }
• \text { Plant } & \mathrm { Dr } & 150,000 & \\
• \text { Gain on revaluation - OCI } & \mathrm { Dr } & 150,000 & \\
• \text { Accumulated depreciation - Plant } & \mathrm { Cr } & & 300,000
• \end{array}\)