26.All of the following are true regarding the revaluation model allowed under IFRS except: A.after initial recognition, the revalued amount is fair value less subsequent depreciation and impairment losses. B.when an asset is revalued, any increase in carrying amount is reported as miscellaneous revenue. C.revaluations must be made regularly to ensure that the carrying value is not materially different from fair value. D.once selected, the revaluation policy applies to an entire class of property, plant, and equipment. Revalued assets cannot be written up above original cost. 27.Land held for speculative purposes is classified as Property, Plant and Equipment but is not depreciated. Land held for speculative purposes is classified as an Investment. 28.Which of the following is not a major characteristic of a plant asset? C.Acquired for use D.Yields services over a number of years Plant assets are not acquired for resale as a normal course of business.
29.The only major characteristic of property, plant and equipment shown below is: Property, plant and equipment are considered long-term assets and as such yield services over a number of years. 30.Which one of the following is nota characteristic of property, plant, and equipment? A.They are acquired for use in operations. B.They are long-term in nature and are always subject to depreciation. C.They possess physical substance. D.All of the options are characteristics. Land, which is part of property, plant, and equipment, is not depreciated. 31.Plant assets may properly include None of these items is properly classified as a plant asset. 32.A special assessment by the municipality for sidewalks and a drainage system would be included in the cost of land. This type of one-time special assessment would be included in the cost of the Land. 33.Boutique Suites Hotel Corporation recently purchased Rodeo Resort and the land on which it is located with the plan to tear down the Rodeo Resort and build a new luxury hotel on the site. Boutique Suites Hotel Corporation salvaged fixtures and wood flooring from Rodeo Resort prior to demolishing the building. The proceeds from the sale of the salvaged materials should be
C.recorded as a reduction of the cost of the land. D.recorded as a reduction of the cost of the new hotel.