When using the revaluation model of accounting for PP&E assets (asset-adjustment or elimination method),
A) the related Accumulated Depreciation account is closed to OCI.
B) depreciation continues to be charged in the original pattern.
C) the difference between fair value and book value is always debited to Revaluation Surplus (OCI).
D) a new depreciation rate must be calculated.

Question

Quizplus · Accepted Answer

When using the revaluation model, a new depreciation rate must be calculated based on the revalued amount of the asset to ensure that the asset is depreciated over its remaining useful life.

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