When using the revaluation model of accounting for PP&E assets (proportionate method),
A) a Revaluation Surplus account is not used.
B) depreciation continues to be charged in the original pattern.
C) the asset account and its related contra-asset are both adjusted.
D) over the life of the asset, it is possible that there can be a net increase in net income from revaluations.

Question

Quizplus · Accepted Answer

In the revaluation model, both the asset account and its related accumulated depreciation (contra-asset) are adjusted to reflect the new revalued amount.

When Using the Revaluation Model of Accounting for PP&E Assets