B an initial revaluation decrease should be disclosed

b. An initial revaluation decrease should be disclosed in the profit report as a
reduction in other comprehensive income
c. An initial revaluation decrease should be treated as a debit to the revaluation
surplus reserve
d. A revaluation decrease should occur if a non-current asset's carrying amount
is less than its fair value
Feedback
The correct answer is: An initial revaluation decrease should be treated as a
debit against the current period’s profit or loss
Question
4
Correct
Mark 1.00 out of 1.00

Flag question
Question text
Eastern Rug Distributors acquired a computer for $ 14 000 on 31 December
2018. Calculate depreciation for the year ended 31 December 2020 using the
diminishing-balance method at 20% p.a. Assume a nil residual value.
Select one:
Question
5
Correct
Mark 1.00 out of 1.00
Flag question
Question text
A machine was purchased on 3 January 2019 for $48 000, net of GST. The
machine had an estimated residual value of $6000 and an estimated useful life
of 5 years. Depreciation expense for the year ended 31 December 2019, using
sum-of-the-years'-digits method, is:
Select one:

d. $14 000
Feedback
The correct answer is: $14 000
Question
6
Correct
Mark 1.00 out of 1.00
Flag question
Question text
The statement relating to revaluations of non-current assets that is not true is:
Select one: