The journal entry to record the increase in the value of a long-lived asset would include which of the following?
A)A credit to Gain on Asset Value Increase.
B)A debit to the long-lived asset account.
C)A credit to Non-Impairment of Asset.
D)No entry would be made according to GAAP.

Question

Quizplus · Accepted Answer

Under GAAP, increases in the value of long-lived assets are not recorded. Asset revaluation is not typically allowed, so no journal entry is made for an increase in value.

The Journal Entry to Record the Increase in the Value