Problem - Before application of the IFRS Revaluation option, the 12/31/17 balance sheet of the Ney Company included its only building:
Building $500,000
A/D (320,000)
Book Value $180,000
The fair value at 12/31/17 was $360,000. No revaluation was recorded in prior years. The Proportional Revaluation method is used. What is the effect of the revaluation adjustment on the 12/31/17 Accumulated Depreciation account and the 12/31/17 Total Stockholders' Equity, respectively?
a. $180,000, $360,000
b. $360,000, $180,000
c. $180,000, $320,000
d. $320,000, $180,000
e. $360,000, $360,000