Coral Inc. purchased machinery at $400,000 on January 1, 2021. At its fiscal year-ends at December 31, 2021 and December 31, 2022, the fair value of the building is assessed to be $408,000 and $342,000, respectively. What is the amount of revaluation adjustment to Net Income for the December 31, 2022 year-end? 

Coral Inc. correctly calculated and recorded annual depreciation expense of $20,000 and $21,474 for 2021 and 2022, respectively. Assume the company uses the revaluation model - asset adjustment method.

 a. Dr. $44,526 

b. Dr. $58,000 

c. Dr. $38,000 

d. Dr. $66,000 

e. Dr. $16,526

Answer rating: 100% (QA)

To calculate the revaluation adjustment to Net Income under the revaluation model we need to ... View the full answer