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The balances in Belfast Inc.'s shareholders' equity accounts at December 31, 2020 are: At this, time, a financial reorganization was approved. Equipment was written down $ 101,800, and inventory increased $ 5,800.
-What is the net increase in the deficit from revaluation of assets?
A) $ 0
B) $ 96,000
C) $ 101,800
D) $ 107,600

Question

Use the following information for questions.
The balances in Belfast Inc.'s shareholders' equity accounts at December 31, 2020 are:  At this, time, a financial reorganization was approved. Equipment was written down $ 101,800, and inventory increased $ 5,800.
-What is the net increase in the deficit from revaluation of assets?
A) $ 0 
B) $ 96,000 
C) $ 101,800 
D) $ 107,600

Quizplus · Accepted Answer

The net increase in the deficit from revaluation of assets is $96,000. This is because the total increase in the value of assets is $101,800, but the total decrease in the value of liabilities is only $5,800.

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