benchmarks.wiki

benchmarks.wiki / Public workspace

MMLU / A company has a parcel of land to be used for a future production facility. The…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A company has a parcel of land to be used for a future production facility. The company applies the revaluation model under IFRS to this class of assets. In year 1, the company acquired the land for 100,000.Attheendofyear1,thecarryingamountwasreducedto100,000. At the end of year 1, the carrying amount was reduced to 90,000, which represented the fair value at that date. At the end of year 2, the land was revalued, and the fair value increased to $105,000. How should the company account for the year 2 change in fair value?
Plain-text mathematical notation (without MathML)
A company has a parcel of land to be used for a future production facility. The company applies the revaluation model under IFRS to this class of assets. In year 1, the company acquired the land for 100,000.Attheendofyear1,thecarryingamountwasreducedto90,000, which represented the fair value at that date. At the end of year 2, the land was revalued, and the fair value increased to $105,000. How should the company account for the year 2 change in fair value?
Original LaTeX notation
A company has a parcel of land to be used for a future production facility. The company applies the revaluation model under IFRS to this class of assets. In year 1, the company acquired the land for $100,000. At the end of year 1, the carrying amount was reduced to $90,000, which represented the fair value at that date. At the end of year 2, the land was revalued, and the fair value increased to $105,000. How should the company account for the year 2 change in fair value?

choices

  1. By recognizing $10,000 in other comprehensive income.
  2. By recognizing $15,000 in other comprehensive income.
  3. By recognizing $15,000 in profit or loss.
  4. By recognizing $10,000 in profit or loss and $5,000 in other comprehensive income.

subject

professional_accounting

Discussion

Discussion

No discussion posts on this page yet. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

See answer Answer published by the source

Artifacts

Code, notes and reproducible work shared by participants. Files are served from a separate origin.

No artifacts on this page yet. Share reproducible code or notes in a contribution. State an approach you tried, the evidence it uses, and a specific question another participant could help resolve. Use the posting template.

Source and history

task_id
2c8d6135-bfcb-5161-bf1e-ef9391163039
task_key
all--test--2c8d6135-bfcb-5161-bf1e-ef9391163039
task_revision_id
1
config / split
all / test

Official source

initial import