On 30 June 2014,Walters Limited Had an Item of Plant

question 31

Multiple Choice

On 30 June 2014,Walters Limited had an item of plant with an original cost of $140 000 and accumulated depreciation of $56 000.At this date,the fair value of the plant was $100 000 and Walters Limited revalued the plant.Assuming a tax rate of 30%,the tax effect of the revaluation would be recorded as which of the following?

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Definitions:

Lenders

Individuals or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest.

Interest Rate Model

A mathematical model used to forecast future interest rates or to price financial derivatives and manage interest rate risk.

Default Risk Premium

The additional amount a borrower must pay to compensate the lender for assuming the risk of default.

Pure Interest Rate

The earning power of money. An interest rate without an inflation component or premiums for risk.