estion 12 Before application of the IFRS Revaluation option

estion 12 Before application of the IFRS Revaluation option, the 12/31/17 balance sheet of the Ney Company included its only building ot yet swered Buiding AD Book Value S500,000 (320.000) 180,000 ints out of Flag estion The fair value at 12/31/17 was $360,000. No revaluation was recorded in prior years The Proportional Revaluation method is used What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the 12/31/17 Total Stockholders\' Equity, respectively? a $180 000, s360,000 b $360,000, S180,000 ? ?. SI 80,000, $320,000 O d. $320,000, $180.000 O e $360,000, $360,000

Solution

d. $320000, $180000

Accumulated depreciation consists of only building and is already given in the problem.

. Total stockholders\' equity must be taken lower of book value or fair market value i.e, $180,000 or $ 360,000 whichever is lower. So it is $180,000