When an asset's carrying amount is increased as a result of revaluation, the increase is credited to

a. Revaluation surplus as a component of profit or loss

b. Deferred income
c. Revaluation surplus as a component of other comprehensive income
d. Retained earnings

Which is NOT a similarity for depreciation and depletion?

a. Both depreciation and depletion are based on time.

b. The estimated life is based on productive life.
c. The rate may be changed upon revision of productive life.
d. Assets are reported in the same classification.

The straight line method of depreciation is not appropriate for

a. An entity that is neither expanding nor contracting an investment in equipment because it is

replacing equipment as the equipment depreciates.
b. Equipment used consistently every period.
c. Equipment on which maintenance and repairs increase substantially with age.
d. Equipment with useful life that is not affected by the amount of use.