Use the following information to solve the following questions:
Tunisia Inc. owns assets to which it applies the revaluation model (asset-adjustment method). The following additional information is available:
1. Accumulated Depreciation at December 31, 2021, (prior to any fair value adjustments) was $ 12,000.
2. Between December 31, 2020, and December 31, 2021, the property's fair value had increased by $ 30,000.
3. The December 31, 2021, balance in the revaluation surplus account (prior to any fair value adjustments) was $ 2,000.
-The adjusted December 31, 2021, in the revaluation surplus account will be
A) $ 0.
B) $ 28,000.
C) $ 30,000.
D) $ 32,000.

Question

Quizplus · Accepted Answer

The adjusted December 31, 2021, balance in the revaluation surplus account will be $32,000. This is calculated by adding the increase in fair value ($30,000) to the existing balance in the revaluation surplus account ($2,000).

Use the Following Information to Solve the Following Questions