A COMPANY OWNS ITS OWN OFFICE BUILDING WHICH IT PURCHASED IN 2011...

97. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING VERSIONB QUESTIONS 2014

97.

A company owns its own office building which it purchased in 2011 for $1,000,000. The real estate market has been volatile in the last few years. The company uses the revaluation model as allowed by IFRS and the following table shows the fair market values since 2011: Year-End YearFair Market Value ($ thousands)2011 1,0002012 6002013 8002014 1,300The impact (in $ thousands) on the income statement in 2014 will most likely be a gain of: A. 500. B. 200. C. 300.