A business charges straight-line depreciation on property. At the start of the year, the property was revalued upward with remaining useful life unchanged. What changes occur compared to the previous year?OptionCarrying ValueExpenses (Depreciation)ADecreaseDecreaseBDecreaseIncreaseCIncreaseDecreaseDIncreaseIncrease

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SSC Financial and Cost Accounting P-1 QUESTION #6133

Question 1

A business charges straight-line depreciation on property. At the start of the year, the property was revalued upward with remaining useful life unchanged. What changes occur compared to the previous year?

Option	Carrying Value	Expenses (Depreciation)
A	Decrease	Decrease
B	Decrease	Increase
C	Increase	Decrease
D	Increase	Increase

Option A
Option B
Option C
Option D✔️

Correct Answer Explanation

Option D is correct.

Carrying value increases — asset recorded at the higher revalued amount.
Depreciation increases — higher value depreciated over same remaining life gives a larger annual charge.

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