ABC Inc Is a Public Entity Which Applies the Fair Value

question 17

Multiple Choice

ABC Inc. is a public entity which applies the Fair Value Model to all of its Investment property. On January 1, Year 1, the company purchased a rental property for $1,200,000. This property was independently appraised at $1,100,000 on December 31^st, Year 1. The present value of the property's cash flows was $1,150,000 on that date. The year-end adjusting journal entry would include:

• A) a loss of $50,000.
• B) a debit to Revaluation surplus - OCI- Land for $100,000.
• C) a credit to depreciation expense of $100,000.
• D) a debit to contributed surplus of $50,000.

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Definitions:

Phallic Stage

A stage in Freudian psychosexual development, occurring roughly between the ages of three and six, during which a child's focus of pleasure is on the genital area.

Latency Stage

A phase in Freudian psychosexual development occurring between ages 6 and puberty, characterized by a decrease in sexual interest and focus on social and intellectual growth.

Personality Development

The growth and development of the aspects of a person that involve their character and personality traits over time.

Oedipus Complex

A concept in psychoanalytic theory describing a child's feelings of desire for the opposite-sex parent and jealousy and rivalry toward the same-sex parent.