Reference no: EM13349864

Question :

1.

Robertson Inc. prepares its financial statements according to International Financial Reporting Standards. At the end of its 2011 fiscal year, the company selects to revalue its equipment. The equipment cost $540,000, had accumulated depreciation of $240,000 at the end of the year after recording annual depreciation, and had a fair value of $330,000. After the revaluation, the accumulated depreciation account may have a balance of:

$240,000.

$264,000.

$270,000.

None of the above.

2.

Canliss Mining uses the retirement method to evaluate depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2011, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss could record 2011 depreciation of:

$3,500.

$4,400.

$5,400.

None of the above.

3.

Canliss Mining uses the replacement method to evaluate depreciation on its office equipment. During 2009, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2011, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2011 depreciation of:

$3,500.

$4,400.

$5,400.